Financial advisers are professional experts who can help you understand your investment profile, design your investment strategy and choose managed funds.
Financial planning is a range of professional services that spans helping you understand your savings and investment goals and showing you how you can build and protect your wealth, how to set up the right financial structures and how to develop good financial habits that will position you for the future.
Financial planning can be delivered in person by a financial adviser, or it can be delivered in print, over the phone or online.
For investors, financial advisers can help provide independent advice on how you should invest yet protect your capital and build your wealth. This should also include advice on risk management, insurance and taxation.
Financial advice and managed funds
While information in this guide has been tailored to self-directed investors who are comfortable conducting their own research and making their own decisions and investment choices, not everyone is ready to do this by themselves.
This is why many investors, including highly experienced sophisticated investors, will have a relationship with a financial adviser, even if it is just to get a second opinion
Choosing the right financial adviser
When choosing a financial adviser, make sure you find one who has all the necessary skills and qualifications, and who is part of a reputable advisory organisation committed to serving their clients' long-term needs.
When considering which financial adviser to consult with, you should check:
- Are they a member of a relevant professional association? Members must abide by its code of ethics and rules of professional conduct.
- Are they registered with the ASIC Financial Advisers Register? Do they have an Australian financial services licence (AFSL)? Are they an authorised representative of an AFS licensee? If they aren't, then they aren't allowed to recommend investment products and you should not trust them.
- Their financial services guide (FSG) is like a product disclosure statement for financial advisers. Good ones will have it available on their website, and the FSG will contain all the information you need to understand who they represent, how they get paid, the services they provide and which companies they work with (this will help you spot potential conflicts of interest).
Financial services guide (FSG)
A financial services guide is like a product disclosure statement for financial advisers. It describes who an adviser represents, how they get paid, the services they provide and which companies they are associated with. Good advisers will have their FSG on full display on the website.
