Understanding Your Annual Review Meeting With Your Financial Adviser

What an Annual Review Covers

If you have an ongoing service agreement with your financial adviser, you should expect an annual review meeting. This meeting is your opportunity to check that your financial plan is still on track, update your adviser on any changes in your life, and discuss whether your investments, insurance, and super remain appropriate for your current situation. A good review should not be a box-ticking exercise — it should be a genuine reassessment.

What to Bring

Bring your current SOA or advice document, any recent superannuation and investment statements, insurance policies, and a summary of any changes to your income, expenses, family situation, or goals. If you have questions about fees or performance, write them down in advance. The more prepared you are, the more value you will get from the meeting.

What You Should Receive After the Review

After your review, your adviser may provide a Record of Advice or updated document summarising any changes to your strategy. If no changes are needed, the adviser should confirm this in writing. You should also receive your annual Fee Disclosure Statement showing what services were provided and what fees you paid. Under FOFA, you have 30 days to respond to the statement and opt out of ongoing fees if you wish.

Red Flags to Watch For

Be cautious if your adviser recommends significant changes every year — especially product switches that generate fees or commissions. A good annual review should result in minor adjustments, not a complete overhaul, unless your circumstances have changed dramatically. If you feel pressured or if the recommendations are not clearly explained, consider getting a second opinion or an independent compliance check.

What an Annual Review Meeting Should Cover

An annual review meeting is your opportunity to assess whether your financial plan is still on track and whether the advice you are receiving represents value for money. A comprehensive annual review should cover: progress toward your stated goals (retirement savings, debt reduction, insurance adequacy), performance of your investment portfolio against benchmarks and your expectations, any changes in your personal circumstances (marriage, divorce, children, job change, health issues), and any changes in laws or regulations that affect your strategy.

Your adviser should also review your insurance cover to ensure it remains appropriate, assess your superannuation contributions against the caps, and recommend adjustments if your goals have changed. The meeting should end with a clear action plan: what will be done differently, what contributions need to change, and what the next steps are. You should leave the meeting feeling confident that your financial plan is up to date.

Preparing for Your Annual Review

To get the most value from your annual review, prepare in advance. Gather your key financial documents since the last meeting: recent super and investment statements, tax return, insurance renewal notices, and any correspondence about changes in your financial situation. Write down any questions or concerns you have, and think about whether your goals have changed during the year.

Also review the fee disclosure statement your adviser should have sent you. Compare the fees you paid against the services you received. If you feel you paid for services that were not delivered, raise this at the review meeting. If the fees have increased without a corresponding increase in services, ask for an explanation. The annual review is as much about assessing value for money as it is about reviewing your financial plan.

Red Flags in Annual Reviews

Be alert to these warning signs: your adviser wants to rush through the review in 15 minutes, there is no written summary or updated plan after the meeting, your portfolio has been restructured without clear explanation, fees have increased without notice, or your adviser recommends the same actions every year without considering whether your circumstances have changed.

Another red flag is if your adviser does not proactively schedule the annual review. Under the law, if you have an ongoing fee arrangement, your adviser must send you a renewal notice each year. If they do not, ongoing fees must stop. If your adviser is hard to reach or avoids scheduling the review, consider whether the ongoing arrangement still serves your interests.

Frequently Asked Questions

How long should an annual review meeting last?
A thorough annual review typically takes 45-60 minutes. If it is consistently much shorter, your adviser may not be giving your situation sufficient attention. If it is much longer, it may indicate that issues have accumulated during the year.

Can I decline the annual review?
Yes, you can decline. However, if you have an ongoing fee arrangement and decline the review, your adviser may still charge the ongoing fee. You have the right to terminate the ongoing arrangement at any time. Consider whether you are getting value from the service before deciding to decline the review.

What if I am not satisfied with the annual review?
Raise your concerns directly with your adviser during the meeting. If you are still not satisfied, you can lodge a complaint with the adviser's licensee. If unresolved, escalate to AFCA. You can also terminate the ongoing fee arrangement and seek a new adviser.

Does the annual review fee count toward my contribution caps?
If the advice fee is deducted from your super, it counts as a super fund expense and does not count toward your contribution caps. However, the fee must be disclosed and must be for a genuine advice service. The ATO has compliance programs to ensure advice fees deducted from super are legitimate.