How to Use a Financial Adviser in Australia: What They Do, How They Charge and How to Find a Good One

The term 'financial adviser' covers a wide range of professionals providing different types of advice across different areas. Understanding what advisers do - and what falls outside their scope - helps you find the right specialist for your needs.

• Holistic financial planning: A comprehensive financial adviser assesses your complete financial picture - income, expenses, assets, liabilities, insurance, super, estate planning, tax position, and goals - and develops an integrated financial plan addressing all areas. This is the most valuable form of advice and typically involves an ongoing relationship.
• Investment advice: Recommending investment portfolios, asset allocations, specific investments (shares, ETFs, managed funds, property), and monitoring portfolio performance against benchmarks and goals.
• Superannuation advice: Contribution strategy (salary sacrifice, NCC, carry-forward), fund selection, investment option selection within super, SMSF establishment and compliance, pension phase transition, and death benefit nominations.
• Insurance advice: Assessing your insurance needs across life, TPD, income protection, and trauma. Recommending specific policies and sums insured. Placing cover with insurers. Many advisers receive commissions from insurers - understand how this is disclosed.
• Retirement planning: Projecting retirement income, optimising drawdown sequences, Age Pension maximisation, aged care financial planning, and estate planning.
• Tax advice - within limits: Financial advisers are not tax agents and cannot prepare tax returns or provide specific tax advice on business structures. They advise on investment tax efficiency (CGT, franking, super tax) in the context of financial planning. For complex tax issues, a qualified tax agent or accountant is the correct referral.
• What advisers cannot do: Prepare tax returns (tax agent's work). Provide legal advice on wills, trusts, or estate documents (solicitor's work). Guarantee investment returns. Predict market movements. Access or manage your accounts without explicit authority.

---

The Australian financial advice industry underwent significant reform following the Hayne Royal Commission (2019) and subsequent legislation. Understanding the current regulatory framework helps you identify qualified, compliant advisers.

• ASIC Financial Advisers Register: Every individual who provides personal financial advice in Australia must be registered on ASIC's Financial Advisers Register (advisers.asic.gov.au). Search by name or company. The register shows: the adviser's current and historical licensee, their qualification status, any disciplinary history, the year they passed the Financial Adviser Exam (FAE), and whether they are an 'authorised representative.'
• The Financial Adviser Exam (FAE): Since 2019, all financial advisers must pass ASIC's approved Financial Adviser Exam - a 3.5-hour examination covering financial planning, taxation, superannuation, insurance, and regulatory requirements. Advisers who have not passed the exam (and have not been granted an exemption) cannot provide personal financial advice. Check the register.
• Education requirements: From 1 January 2026, all practicing financial advisers must hold a relevant degree qualification (bachelor level or above) in addition to the FAE. Existing advisers who have been practicing since before 2019 may have transitional arrangements. The Financial Advice Association of Australia (FAAA) and the Stockbrokers and Investment Advisers Association (SIAA) are the peak industry bodies.
• Licensed vs authorised representative: An Australian Financial Services Licensee (AFSL) is the entity licensed by ASIC to provide financial services. Individual advisers can be either the AFSL holder themselves (their own licence) or an 'authorised representative' of a larger AFSL. Both must appear on the ASIC register. Larger licensee groups include AMP Financial Planning, Count Financial, Insignia Financial (formerly IOOF), and dealer groups associated with the major banks.
• Best interests duty: Since 2013 (strengthened post-Hayne), financial advisers have a statutory best interests duty - they must act in your best interests, provide advice appropriate to your circumstances, and prioritise your interests over their own or their licensee's. This means advisers cannot recommend products purely for the commission or to benefit their employer.
• Statement of Advice (SOA) and Record of Advice (ROA): A SOA is a formal document that must be provided before you act on personal financial advice. It must include: the adviser's recommendations, the basis for those recommendations, alternative strategies considered, all fees and conflicts of interest, and details of any products recommended. Review the SOA carefully before implementing any advice. A ROA is a shorter document for subsequent advice updates where the SOA remains substantially current.

---

Financial advice fees are one of the most important - and most confusing - aspects of choosing an adviser. Fees come in multiple forms, and understanding the total cost is essential before engaging.

• Fee for service (best practice): The adviser charges a transparent dollar fee for the advice provided, not linked to any product placement or investment amount. This eliminates conflicts of interest - the adviser is paid the same whether they recommend cheap ETFs or expensive managed funds. Initial advice fee: typically $3,000–$6,000 for a comprehensive financial plan. Ongoing annual fee: $3,000–$8,000/year for ongoing advice and review.
• Asset-based fees (percentage of portfolio): Many advisers charge a percentage of assets under advice - typically 0.5–1.5% per year. On $500,000 managed, a 1% fee = $5,000/year. This structure creates a misalignment: the adviser benefits from growing your portfolio (aligned) but also from you investing more with them rather than repaying debt or making super contributions (misaligned). Asset-based fees grow as your wealth grows - regardless of the complexity or value of advice provided.
• Life insurance commissions - the permitted exception: Following the Hayne Royal Commission, product commissions were banned for most financial products (investment, superannuation). However, commissions on life insurance (life, TPD, trauma, income protection) placed outside super remain permitted - initial commission up to 60% of first-year premium, ongoing 'trail' commission up to 20% of ongoing premium. This creates a structural conflict - advisers who earn commission on insurance may recommend higher sums insured or more expensive products. Ask your adviser to disclose the dollar commission on any insurance recommended.
• Ongoing fee consent - the annual opt-in: Since 2021, advisers must obtain your written consent annually to continue charging ongoing fees. This 'fee disclosure statement' and 'ongoing fee arrangement' consent requirement prevents fees continuing without ongoing value being delivered. Review the annual consent letter carefully - confirm the fees charged match the services received before signing.
• Total cost of advice - the number to ask for: Ask any adviser for the total dollar cost of their advice in year one (including SOA fee, implementation fees, any platform or wrap account fees, ongoing annual fee) and in subsequent years. Many advice arrangements have multiple fee layers that compound to a higher total than the headline fee suggests. A transparent adviser will provide this clearly.
• Scaled advice - lower cost for specific questions: Not all advice requires a comprehensive plan. 'Scaled' or 'limited scope' advice addresses a specific question (e.g. 'should I salary sacrifice into super?' or 'which super fund should I choose?'). This costs significantly less - typically $1,000–$2,000 for a specific SOA. ASIC's MoneySmart website offers free calculators and general guidance that can substitute for scaled advice on straightforward questions.

---

The quality of financial advisers varies enormously. Following a structured selection process - rather than acting on a referral alone - significantly improves your chance of finding an adviser who genuinely serves your interests.

• FAAA Find an Adviser: The Financial Advice Association of Australia (faaa.com.au/find-an-adviser) lists FAAA member advisers. FAAA membership requires continuing professional development and adherence to a professional code of ethics - a basic quality filter. Search by location and specialty.
• ASIC Financial Advisers Register - verify before meeting: Before meeting any adviser, search their name on the ASIC register (advisers.asic.gov.au). Confirm: they are currently registered, have passed the FAE, have no disciplinary history, and are authorised by a current AFSL. Do not engage an adviser who is not on the register.
• Fee-for-service filter - the quality signal: Search for fee-for-service advisers on platforms like Adviser Ratings (adviserratings.com.au) or the FAAA directory filtering for 'fee for service' advisers. While not a guarantee of quality, fee-for-service advisers have eliminated the most significant structural conflict in advice - product commissions.
• The initial meeting - what to ask: Most advisers offer a free initial consultation. Use it to ask: What is your specialty? How are you remunerated (all sources of income from your advice)? What qualifications do you hold? Who holds your AFSL? How do you manage conflicts of interest? What does your typical client look like? Can you provide references from existing clients? A good adviser welcomes these questions - a defensive or evasive response is a red flag.
• Specialist vs generalist: Different advisers have different expertise. A specialist in retirement planning and Centrelink optimisation is more valuable than a generalist at that life stage. A specialist in small business exit strategies is more valuable for a business owner than a generalist. Ask about the adviser's specific experience with clients in your situation.
• Red flags - walk away immediately: Guarantees of investment returns. Pressure to act urgently. Reluctance to disclose all fees in writing. Cannot be found on the ASIC register. Recommends products that generate high commissions without clear justification. Discourages you from seeking a second opinion. Proposes complex structures without clear benefits. These are not just bad practices - they may be illegal.

---

Engaging a financial adviser is not a one-time event - it is an ongoing relationship. Getting maximum value requires active participation, honest communication, and annual reviews.

• Prepare thoroughly for every meeting: Bring complete financial information - super statements, investment accounts, income details, insurance policies, mortgage statements, and a clear list of goals and concerns. Advisers who receive complete information provide better advice than those working from incomplete data.
• Be honest about your risk tolerance - not aspirational: Many investors describe their risk tolerance as higher than it actually is because they want to appear sophisticated. Then they panic-sell when markets fall. Be honest about how you would feel and behave if your portfolio fell 30%. Your adviser can only calibrate advice to your real psychological tolerance, not your stated one.
• Implement advice promptly: The value of financial advice is zero until implemented. The most common reason advice fails to improve financial outcomes: the client receives the SOA, agrees in principle, but delays implementation for months or years. Set specific implementation deadlines with your adviser and treat them as commitments.
• Annual review - the most important meeting: An annual review meeting is where ongoing advice adds the most value - updating projections based on actual results, adjusting for life changes (new job, child, property purchase, inheritance), rebalancing the portfolio, reviewing insurance needs, and checking progress toward goals. Attend every annual review meeting and prepare questions in advance.
• When to seek a second opinion: If your adviser recommends a complex product, a significant fee increase, or a strategy that you don't fully understand - seek a second opinion from a different adviser or a qualified accountant. Good advisers support second opinions - they confidence in their recommendations. Any adviser who discourages this should be viewed with suspicion.
• DIY vs advice - the right threshold: Not everyone needs a financial adviser. For simple situations (salaried employee, one super fund, ETF portfolio, no investment property, no complex structures), ASIC's MoneySmart resources, low-cost online tools, and general financial education may be sufficient. Advisers add the most value for complex situations: business owners, high-income earners with multiple tax strategies, approaching retirement, significant estates, complex insurance needs, or life events requiring major financial restructuring.

---

Good financial advice helps you build wealth over decades. Roopon helps you save money every week. Exclusive partner discounts on everyday spending and FREE included prize-draw entries (per campaign terms) from $19.99/month - no SOA required, no ongoing fee consent form, no conflicts of interest. Just real savings from real Australian partners. Join at roopon.com.au. ABN 89 656 278 830. Terms apply.

---

Join Roopon today for exclusive member discounts and FREE included prize-draw entries per your plan and published campaign terms.

Join ROOPON Now