How to Use a Financial Planner for the First Time in Australia

Walking in prepared means your adviser spends time on strategy, not data collection. Gather these documents before your first meeting.

• Recent payslips (last 2–3 months) and last two tax returns - your adviser needs to understand your current and recent income, especially if it varies
• Super fund statements: log into your fund's portal and download the most recent annual statement showing balance, insurance cover and investment option
• A complete list of assets: bank accounts with balances, investment accounts, property values (use recent comparable sales, not wishful thinking), vehicle values
• A complete list of liabilities: mortgage balance and interest rate, personal loans, car loans, HECS/HELP balance, credit card limits and outstanding balances
• Insurance policies in force: life, TPD, income protection, trauma - include the insurer, sum insured, waiting and benefit periods, and annual premium
• A clear statement of your goals in priority order: retire at 60, buy an investment property, pay off mortgage by 50, build $1M super - the more specific, the better the advice
• Any recent inheritance, redundancy, property sale or business sale proceeds - one-off events often trigger the need for advice and require specific strategies

---

The Australian financial advice process is regulated under the Corporations Act. Knowing what to expect removes the uncertainty and helps you assess the quality of advice you receive.

• Your adviser must provide a Financial Services Guide (FSG) at the first meeting - this outlines who they work for, how they are paid and how complaints are handled; read it before signing anything
• After gathering your information, the adviser prepares a Statement of Advice (SOA) - a legal document that must explain every recommendation, the basis for it, and any conflicts of interest
• The SOA must include a fee disclosure and an explanation of how the advice is in your best interests under FoFA (Future of Financial Advice) legislation - if it does not, ask why
• Ongoing advice clients receive a Fee Disclosure Statement (FDS) annually showing exactly what fees were charged and what services were received - you must actively opt in every two years
• Implementation of the SOA is separate from receiving it - your adviser should walk you through each action, which ones they handle and which you must initiate yourself
• Personal advice (based on your specific circumstances) must be distinguished from general advice (not based on your situation) - if someone gives you a recommendation without asking about your circumstances, they are giving general advice and you have no SOA protection
• Record of Advice (ROA): for minor updates to existing advice, a shorter ROA may be used instead of a full SOA - this is normal and legitimate for straightforward changes

---

First-time advice clients are vulnerable to specific mistakes - both in choosing an adviser and in how they engage with the advice process. These are the most common and how to avoid them.

• Not checking ASIC's Financial Advisers Register (moneysmart.gov.au/financial-advice/financial-advisers-register) before the appointment - always verify an adviser's AFSL, qualifications and any disciplinary history before sharing your financial details
• Confusing product sales with advice: mortgage brokers, insurance brokers and bank staff can all call themselves financial specialists but may only be authorised to recommend specific products - genuine advisers hold an AFSL (or be authorised representatives of one)
• Accepting general advice as personal advice: if someone tells you to 'consider an SMSF' without reviewing your full situation, that is not personal advice and carries no obligation to act in your best interests
• Failing to ask about fees upfront: ask for the total cost in dollars - initial advice fee, implementation fee and ongoing annual fee - before the SOA is prepared; some advisers charge $3,000–$8,000 for initial advice alone
• Insurance commission blindspot: advisers can still earn commissions on life, TPD and income protection insurance (capped at 66% upfront and 22% ongoing since 2018) - this can create a bias toward recommending insurance; ask whether commission applies to any recommendation
• Implementing advice selectively: the SOA is designed as a whole - implementing some recommendations but not others (e.g. taking the investment advice but skipping the insurance recommendation) can leave you exposed in ways the adviser did not intend
• Not returning for reviews: a good financial plan needs an annual review as income, family circumstances, legislation and market conditions change - treating advice as a one-time transaction reduces its long-term value significantly

---

Not all advice is equal. These signals help you assess whether what you received genuinely serves your interests.

• The SOA should clearly explain WHY each recommendation is appropriate for your specific situation - vague language like 'this is appropriate given your goals' without specifics is a red flag
• Recommendations should include the alternatives considered and why they were rejected - a good adviser explains why an SMSF was not recommended, not just what was
• Fee transparency: the SOA must disclose all fees and commissions - if you cannot find a clear dollar amount for what you will pay and what the adviser receives, ask before signing
• Adviser qualifications: since 1 January 2019, new advisers must hold an approved degree, complete a professional year and pass the Financial Adviser Standards and Ethics Authority (FASEA) ethics exam; existing advisers had until 2026 to comply - check the register
• CFP (Certified Financial Planner) or FChFP designation and FAAA (Financial Advice Association Australia) membership are positive indicators of commitment to professional standards
• Use AFCA (Australian Financial Complaints Authority, afca.org.au) if you believe advice was deficient - AFCA is free for consumers and has the power to award compensation up to $1 million for personal advice complaints

---

While you're building your financial plan, Roopon helps you reduce everyday costs through member discounts on dining, retail, health, travel and services across Australia. from $19.99/month you get real savings on real spending - plus FREE included prize-draw entries per your plan and published campaign terms.

Visit roopon.com.au to become a member.

---

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

Join ROOPON Now