What to Do if Your Adviser Leaves the Industry

Your Adviser Leaving Doesn't Leave You Stranded

Financial advisers leave the industry for many reasons — retirement, career change, relocation, or regulatory disqualification. Regardless of the reason, your financial affairs are not abandoned. The adviser's licensee (their AFSL holder) is responsible for ensuring clients are transitioned to a new adviser or otherwise supported.

You Will Be Reassigned

The licensee must notify you when your adviser leaves and offer you an alternative adviser within the same practice or licensee group. You are not required to accept the replacement — you can shop around. However, the licensee must ensure continuity of service, especially if you have ongoing fee arrangements in place. You should not experience a gap in service without being informed.

Review Your Ongoing Fees

When your adviser leaves, check whether your ongoing fee arrangement is still active and whether you are receiving the agreed services from the replacement adviser. If services have stopped but fees are still being deducted, contact the licensee immediately. Under FOFA, ongoing fee arrangements must be renewed annually, and you have the right to opt out at any time.

Get Your Documents

If you decide to move to a different adviser or licensee, request a copy of your file, including your SOA, ongoing service agreement, and records of any advice provided. The licensee must provide these upon request. Having your SOA is particularly important — it is the record of the advice you received and the basis for any future financial decisions.

Check if the Adviser Was Disqualified

If your adviser was banned or disqualified by ASIC, this is a serious matter. You can check the ASIC Register to see if enforcement action was taken. If your adviser was banned for misconduct, you may have grounds to seek compensation through AFCA if the advice you received was non-compliant.

What Happens When Your Adviser Leaves

When a financial adviser leaves the industry, the licensee must notify you and make arrangements for ongoing advice services. You should receive written notification explaining: that your adviser is no longer providing services, who your new contact will be, what arrangements are in place, and how to access your client records.

Your existing products and strategies remain in place. However, ongoing service arrangements may need to be adjusted. The licensee should offer you the opportunity to meet with a new adviser to review your situation.

Your Options

You have several options: accept a new adviser assigned by the licensee, request a different adviser within the same licensee, transfer your business to a different licensee, or manage your affairs independently. The licensee should facilitate a smooth transition regardless of your choice.

If moving to a different licensee, your new adviser will need to review your arrangements and may recommend changes. You may need to sign a new ongoing service agreement and provide updated information.

What to Review After a Change

After your adviser leaves, schedule a meeting with your new adviser to review: your current financial situation and goals, whether the existing advice remains appropriate, ongoing fee arrangements and whether they still provide value, and any changes in your circumstances since the last advice.

Review your ongoing service agreement to ensure it reflects the new arrangements. If you had ongoing fees with your previous adviser, confirm these continue but are now serviced by the new adviser.

Frequently Asked Questions

Will my insurance and super be affected?
Your existing products remain in place. Confirm with the licensee that ongoing services will be fulfilled by the new adviser.

How do I access my records?
The licensee must keep records for 7 years. Contact them to request copies of your SOAs, ROAs, and other documents.

Can I follow my adviser to their new licensee?
Yes, if your adviser moves to a different licensee you can transfer your business. You will need to provide consent and the new licensee must obtain proper records.

What if my adviser was banned by ASIC?
ASIC may notify affected clients. The licensee must manage your affairs. If the banning was due to misconduct, you may be entitled to compensation.

AFCA Complaints — What to Know

If you have a dispute with your financial adviser, AFCA provides free independent dispute resolution. In 2023-24, AFCA received 3,559 complaints about investments and advice. The most common issues were inappropriate advice, fees disputes, and poor disclosure. AFCA can award compensation of up to $1 million (with a $5.36 million cap for superannuation complaints). Complaints must be lodged within 6 years of the issue arising.