How to Choose a Financial Adviser in Australia
Not sure how to choose a financial adviser in Australia? A plain-English guide to licensing, fees, independence and the right questions to ask.
By Timothy Hirou GaschereauPublished 12 min read
Good financial advice can genuinely change your life: the right adviser can help you retire earlier, pay less tax, protect your family, or simply stop making expensive mistakes. But knowing how to choose a financial adviser in Australia is, frankly, confusing. The industry has its own language, its own rules, and more than a few conflicts of interest baked in.
The good news: there is a clear, logical checklist. Follow it and you cut through the noise fast. This guide is part of our compare and choose series. It is general information about how to CHOOSE an adviser, not personal financial advice.
🎯 The essential: Always check the ASIC Financial Advisers Register FIRST: if they are not on it, walk away. Understand how they are paid (fee-for-service vs commissions, still allowed on life insurance) and get fees in DOLLARS. “Independent” has a strict legal meaning, so most advisers are aligned. Personal advice carries a best interests duty and a Statement of Advice. And many people do not need a full adviser: scaled advice, robo-advice or Moneysmart may be enough.
Step one: check they are licensed
This is non-negotiable, and it comes before their website, before a meeting, before anything. Every adviser giving personal advice on investments, super and life insurance must hold, or be an authorised representative of, an Australian Financial Services (AFS) licence, and be individually registered with ASIC.
The ASIC Financial Advisers Register (via moneysmart.gov.au) is your first stop. Search by name, adviser number, ABN or postcode. It shows their qualifications, their licensee, what they can advise on, their industry history, and any bans or disciplinary action. If someone is not on the register, they cannot legally give you personal financial advice. Full stop, no matter how convincing the pitch.
How financial advisers get paid
How an adviser is paid shapes the advice you receive. Two main models:
- Fee-for-service: a flat fee, an hourly rate, or a percentage of the assets they manage (an assets-under-management or AUM fee).
- Commissions: a payment from a product provider for recommending their product.
Since the Future of Financial Advice (FOFA) reforms, commissions on most investment and super products are banned, which removed a major source of conflicted advice. Commissions on life insurance are still allowed, though capped (60% upfront, 20% ongoing), so if an adviser recommends insurance, ask what commission they receive.
Always ask for fees in DOLLARS, not just percentages, and remember ongoing fee arrangements require your written consent each year. A comprehensive Statement of Advice commonly runs several thousand dollars, sometimes with implementation fees on top. Transparency is a green flag; vagueness is a red one.
Independent vs aligned advice
The word “independent” means something specific under Australian law, and most advisers cannot legally use it. An adviser is only truly independent if they receive no commissions or conflicted remuneration and are not linked to a product issuer, which makes genuinely independent advisers relatively rare. Most are aligned: owned by, or commercially linked to, a bank, super fund, insurer or product provider. That is not automatically bad, but it creates potential conflicts. Ask directly: “Are you aligned with any product providers, and could that affect your advice?” A good adviser answers clearly and explains how they manage conflicts. Evasiveness is a warning sign.
The paperwork and your protections
Personal advice takes your circumstances into account (income, goals, debts, risk tolerance) and carries the strongest protections, including the best interests duty. General advice does not consider your situation and must carry a warning saying so. You want personal advice.
- Financial Services Guide (FSG): given upfront, explaining who they are, their services, how they are paid, and how to complain. If they skip it or rush you past it, walk away.
- Statement of Advice (SOA): the written record of your personal advice, including recommendations, reasons, conflicts and all fees. Ask its cost before you commit.
- Product Disclosure Statement (PDS): for any specific product recommended, covering features, fees and risks.
- Best interests duty: advisers giving personal advice are legally required to act in your best interests, an enforceable obligation.
What to look for and the questions to ask
Seven questions to ask before you sign anything: are you on the ASIC register? How are you paid, and what are your fees in dollars? Are you independent or aligned? Do you have a best interests duty for my advice? What will the SOA cost, plus any implementation fees? What experience do you have with situations like mine? Can I see a sample SOA first?
| Green flag | Red flag |
|---|---|
| Listed on the ASIC register | Not on the register, or dodges the question |
| Quotes fees clearly in dollars | Only talks percentages, or is vague on cost |
| Discloses any alignment upfront | Deflects questions about conflicts |
| Gives you the FSG before you start | Skips or rushes past the FSG |
| Understands your situation before recommending | Recommends products in the first meeting |
| Welcomes your questions | Uses jargon or pressures you to decide fast |
Do you actually need one?
Honest answer: not everyone does, and knowing that is itself a smart move.
- You may not need a full adviser if your situation is straightforward: scaled (single-issue) advice, robo-advice platforms, or free tools like ASIC Moneysmart may be enough.
- Advice is genuinely worth it for higher-stakes moments: approaching retirement and super drawdown, setting up an SMSF, a large inheritance or redundancy, a full insurance review, or estate planning.
The cost of good advice can be significant, but the cost of bad decisions (or no decisions) is often far higher. If insurance is your driver, our guides on comparing life insurance and comparing super funds are good starting points.
SnowLetter
Fresh snow in your inbox once a week: Australia's money news, quick tips, and our best reads.
❓ Frequently asked questions
How do I check if a financial adviser is licensed in Australia?
+
Use the ASIC Financial Advisers Register via moneysmart.gov.au. Search by name, adviser number, ABN or postcode. It shows their registration status, qualifications, licensee, what products they can advise on, and any disciplinary history. If they are not on the register, do not engage them.
How much does a financial adviser cost in Australia?
+
Costs vary. An initial Statement of Advice commonly runs several thousand dollars (often around $3,000 to $6,000 or more), with implementation fees sometimes on top, and ongoing annual fees frequently around $3,500 to $5,000 depending on complexity. Always ask for all fees in dollar amounts before you agree.
What is the difference between independent and aligned advice?
+
'Independent' has a specific legal meaning in Australia: an adviser can only use the term if they receive no commissions or conflicted remuneration and are not linked to a product issuer, so genuinely independent advisers are rare. Most advisers are 'aligned' (linked to a bank, insurer or product provider), which is not automatically bad but creates conflicts you should ask about.
Are financial advisers paid commissions in Australia?
+
Commissions on most investment and superannuation products were banned under the FOFA reforms. Commissions on life insurance are still permitted, subject to caps (60% upfront, 20% ongoing), and require your consent. Always ask an adviser to disclose any commissions in dollar terms.
What is a Statement of Advice?
+
A Statement of Advice (SOA) is the written document setting out the personal advice an adviser gives you: their recommendations, the reasons, any conflicts of interest, and a full breakdown of fees. You should receive it before implementing anything. Ask what it will cost upfront, as fees vary a lot.
Do I need a financial adviser?
+
Not necessarily. If your finances are straightforward, free resources like ASIC Moneysmart, scaled single-issue advice, or lower-cost robo-advice may be enough. A full adviser is most valuable around retirement, an SMSF, a large lump sum, complex insurance needs, or estate planning. Match the level of advice to the complexity of your situation.
Keep reading
📚 Recommended reading
The Barefoot Investor
Scott Pape
The Barefoot Investor
Scott Pape
Australia's best-selling money book ever. A simple system for accounts, budgeting, debt and a real emergency fund in one.
Making Money Made Simple
Noel Whittaker
Making Money Made Simple
Noel Whittaker
Australia's classic, comprehensive money guide covering tax, super and investing, updated for today.
Sort Your Money Out and Get Invested
Glen James
Sort Your Money Out and Get Invested
Glen James
From the host of the my millennial money podcast, a step-by-step Aussie plan to fix your spending, clear debt and actually start investing. Practical and refreshingly free of finance-bro nonsense.
Some links above are affiliate links. If you buy through them, Snowball Invest may earn a small commission at no extra cost to you. We only recommend books we'd suggest anyway.
Sources
This article is general information only, not personal financial advice. Rules, fees and adviser obligations can change. Verify any adviser on the ASIC Financial Advisers Register and read their Financial Services Guide before you engage them.
Was this article useful?
General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
LinkedIn →Related articles
Term Deposit vs Savings Account in Australia: Which Wins?
Term deposit vs savings account in Australia: compare rates, access, safety and tax, and work out which one suits your savings goals.
Debit Card vs Credit Card: Which Should Australians Use?
Debit card vs credit card in Australia: the real differences on interest, fraud protection and credit score, and which suits your spending habits.
How to Compare Bank Accounts in Australia (Everyday Accounts)
Learn how to compare bank accounts in Australia: fees, features, safety and how to switch, so you stop paying fees you do not need.