How to Choose a Financial Adviser in Australia: What to Look For, What It Costs, and What to Avoid (2026)

In Australia, only individuals who hold an Australian Financial Services (AFS) Licence, or who are authorised representatives of an AFS licensee, can provide personal financial advice. Since 2022, advisers must also meet the requirements of the Financial Adviser Standards and Ethics Authority (FASEA) - including holding an approved degree, completing a professional year, passing the national exam, and committing to ongoing professional development.

This has significantly raised the bar from earlier periods when commission-driven salespeople operated under the financial advice label. Always verify an adviser's credentials on the Financial Advisers Register at moneysmart.gov.au/financial-advice/financial-advisers-register before engaging them. This register shows their qualifications, licensee, any bans or conditions, and the types of advice they are authorised to provide.

Not all financial advice engagements are the same - understanding the type you need helps you find the right match:

• General advice: Information about financial products that does not take into account your personal circumstances. Product comparison websites, some bank staff, and robo-advisers typically provide general advice. Cheaper but not tailored to you - suitable for straightforward, low-stakes decisions.
• Personal advice: Advice that takes your specific situation, goals, and financial position into account and results in a recommendation. Provided by licensed financial planners. Required for complex situations - superannuation strategy, insurance, estate planning, investment portfolios, retirement planning.
• Scaled advice: Personal advice on a specific, limited topic (e.g., 'should I make additional super contributions?') rather than a full financial plan. Often provided by industry super funds as intra-fund advice at low or no additional cost to members - a good starting point before paying for comprehensive advice.
• Comprehensive financial planning: A full review of your financial position covering super, insurance, investments, tax strategy, estate planning, debt management, and retirement projections. The most thorough and most expensive form of advice - appropriate for complex situations, major life transitions, or those approaching retirement.

Understanding how an adviser is paid is critical - fee structures affect the advice you receive:

• Fee for service (flat fee): The adviser charges a fixed dollar amount for a specific scope of work - for example, $3,000 to $5,000 for a comprehensive financial plan. Aligned with client interests; no incentive to recommend products that pay higher commissions. Now the dominant model among quality advisers following post-royal commission reforms.
• Percentage of assets under management (AUM): The adviser charges a percentage of the portfolio they manage - typically 0.5% to 1.5% per annum. On a $500,000 portfolio at 1%, that is $5,000 per year. Can be reasonable for ongoing management but check whether the fee reduces as the portfolio grows.
• Ongoing advice fees: Many advisers charge an annual ongoing fee for review meetings, tax planning updates, and availability for ad hoc questions. This can be $2,000 to $5,000 or more per year. Only appropriate if you have a genuinely ongoing need - not if you need advice once.
• Commission (limited): Commissions on investment products were banned following the Future of Financial Advice reforms. Risk insurance commissions (life, TPD, income protection) are still permissible up to regulated caps - an adviser can receive a commission from an insurer for recommending a policy. This does not make the advice poor, but understand it exists.
• Avoid: Advisers who are evasive about how they are paid, who push proprietary products, or whose fees are not disclosed clearly in writing before you engage. ASIC requires advisers to provide a Financial Services Guide (FSG) detailing their fee arrangements before providing advice.

Several directories and platforms connect Australians with licensed advisers:

• ASIC's Financial Advisers Register: moneysmart.gov.au/financial-advice/financial-advisers-register - search by postcode, name, or licensee. Verify credentials and check for any bans or conditions before engaging anyone.
• FPA Find a Planner: The Financial Planning Association of Australia (FPA) maintains a directory of members who meet professional standards - fpa.com.au/find-a-planner.
• FAAA Find an Adviser: The Financial Advice Association Australia (formerly AFA) also maintains a member directory at faaa.com.au.
• Your super fund: Many industry super funds (Australian Super, REST, Hostplus, Aware Super) offer intra-fund advice at low or no cost. This is a good first step if your questions are primarily super-related.
• Accountants: Some accountants hold a limited AFS Licence allowing them to provide advice on SMSFs and related matters. If you already have a trusted accountant, ask whether they can assist directly or refer you to an aligned adviser.

Treat the initial meeting as a job interview - you are hiring them:

• Are you a fiduciary? Licensed advisers in Australia are required to act in your best interests under the best interests duty - ask them to confirm this applies to your engagement.
• How are you paid? Ask for a specific breakdown - flat fee, AUM percentage, commissions. Request it in writing before signing.
• What is included in your scope? Clarify exactly what the advice covers. A comprehensive plan, a specific topic, or ongoing management?
• Do you have experience with clients in my situation? An adviser who specialises in pre-retirees may not be the right fit for a 30-year-old building their first investment portfolio.
• Can I see a sample Statement of Advice? The SOA is the written document containing the adviser's recommendations. A quality SOA clearly explains the basis for each recommendation and the associated fees.
• What happens if I disagree with a recommendation? You are not obligated to follow any advice given. A professional adviser welcomes questions and does not pressure clients.

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