How to Switch Financial Advisers — A Consumer Guide

You Can Switch at Any Time

You are not locked into a financial adviser indefinitely. If you are unhappy with the service, the quality of advice, or the fees, you have the right to switch to a different adviser at any time. Most advisers do not charge exit fees, but it is important to review your ongoing service agreement to confirm what notice period applies — typically 30 days.

Review Your Ongoing Service Agreement

Before switching, check your ongoing service agreement and your Statement of Advice. These documents should outline any notice periods, fees for early termination, and what happens to any ongoing fee arrangements. Under FOFA reforms, ongoing fee arrangements must be renewed annually, and you have the right to opt out of ongoing fees at any time. If you are paying ongoing fees for services you are not receiving, this is a legitimate concern to raise.

Find a New Adviser

When choosing a new adviser, check that they are licensed on the ASIC Register and that their licence covers the type of advice you need. Ask about their fee structure upfront — some advisers charge a fixed fee for a Statement of Advice, while others charge ongoing fees as a percentage of your investment balance. Clarify how they charge before committing.

Transfer Your Documents

Your new adviser will need copies of your current SOA, any ongoing service agreements, and details of your existing products (super accounts, insurance policies, investments). Your current adviser is required to transfer your file upon request. There may be a reasonable fee for document preparation, but they cannot withhold your information.

What Happens to Your Ongoing Fees

When you switch advisers, your ongoing fee arrangement with the previous adviser should cease. Confirm in writing that ongoing fees have stopped. If fees continue to be deducted after you have terminated the arrangement, contact the adviser's licensee and, if unresolved, escalate to AFCA.

Why You Might Want to Switch

There are many valid reasons to switch advisers: you have moved and want a local adviser, you feel your current adviser is not meeting your needs, you want a specialist in a particular area, fee concerns, or you no longer trust your adviser. Whatever the reason, you are entitled to make the change.

Before switching, clarify what you want from a new adviser. This will help you choose the right replacement and ensure your needs are met going forward.

How to Switch

First, find and engage a new adviser. Your new adviser will handle most of the transfer process. They will need your written consent to request client records from your previous adviser. The previous adviser must transfer records promptly.

Check your existing ongoing service agreement for any notice periods or exit fees. If you have prepaid fees, you may be entitled to a refund for the unexpired portion. The new adviser should review your existing strategy before making changes.

What to Expect After Switching

Your new adviser will conduct an initial review of your financial situation and existing strategy. They may recommend changes based on their assessment. You will receive a new SOA or ROA documenting any new recommendations.

Your existing products and investments remain in place during the transition. The new adviser should ensure continuity of any ongoing services such as insurance reviews or investment monitoring.

Frequently Asked Questions

Do I need to tell my current adviser I am leaving?
It is professional to inform them, but not legally required. Your new adviser will typically manage the communication and record transfer.

Will switching advisers affect my investments?
Your existing investments remain in place. Changes only occur if you and your new adviser agree on a new strategy. There is no forced sale of existing products.

How long does the transfer take?
Record transfers typically take 1-4 weeks. Your new adviser should manage the process and keep you informed of progress.

Can I switch if I have an ongoing fee arrangement?
Yes. Your ongoing arrangement can be terminated at any time. You may need to give notice as specified in your agreement. Request a refund of any prepaid fees.