A checklist for choosing a financial adviser in Australia
Choosing a financial adviser is not a decision most people make often, which makes it easy to focus on rapport in a first meeting and skip over some of the more concrete checks that are worth making before any money or paperwork changes hands. None of the following requires specialist knowledge — it is a practical checklist that applies to comparing any adviser.
The first check is verifying licensing directly. Search the adviser's name on ASIC's Financial Advisers Register at moneysmart.gov.au and confirm their current AFSL or authorised representative status, review the qualifications listed against them, and check whether there is any disciplinary history or ban on record. This takes only a few minutes and is the single most direct way to confirm someone is who they say they are before you go any further.
The second check is understanding the fee structure in writing before any work actually begins. Ask specifically whether you are being charged fee-for-service, an asset-based percentage, or — in the case of insurance recommendations — whether a commission applies, and ask for a total dollar estimate rather than settling for a percentage figure alone, since a percentage can be harder to picture in real terms until it is converted into an actual amount.
The third check is clarifying scope. Are you looking for a single, one-off piece of advice or an ongoing relationship? Is what you are being offered general advice or personal advice, given the meaningful difference between the two? And does the adviser's specific area of focus — retirement planning, superannuation and SMSF, insurance, or something else — actually match what you need, since not every adviser covers every topic in equal depth.
The fourth check is confirming the dispute-resolution path before you need it. AFSL holders are required to belong to the Australian Financial Complaints Authority, AFCA, for external dispute resolution if something goes wrong, and a reputable adviser should be able to confirm this without hesitation if you ask.
The fifth check is insisting on a written Statement of Advice before implementing any recommendation, rather than proceeding on the basis of a verbal conversation alone. If you go on to enter an ongoing fee arrangement, remember that your consent to keep paying that fee needs to be reconfirmed periodically, and that you are entitled to end the arrangement at any time.
This article is general information only. It has been prepared without taking into account your individual objectives, financial situation or needs, and it is not personal financial advice. Before engaging any financial adviser, confirm they currently hold an Australian Financial Services Licence (AFSL) or are an authorised representative of an AFSL holder, using ASIC's Financial Advisers Register at moneysmart.gov.au. Our directory lists financial advisers and superannuation specialists across Australia by area if you are ready to start comparing your options.
Frequently asked questions
Verify their licensing directly on ASIC's Financial Advisers Register at moneysmart.gov.au — this confirms their current AFSL or authorised representative status, their qualifications, and any disciplinary history, and takes only a few minutes.
Ask specifically whether you are being charged fee-for-service, an asset-based percentage, or a commission on any insurance recommended, and request a total dollar estimate rather than a percentage alone, in writing, before work begins.
Ask directly about their area of focus — for example retirement planning, superannuation and SMSF, or insurance — since advisers commonly specialise, and not every adviser covers every topic to the same depth.
AFCA is the Australian Financial Complaints Authority. AFSL holders are required to belong to it for external dispute resolution, so confirming an adviser's AFCA membership gives you a clear path if a problem arises later.