12 Steps to find a Financial Advisor

Thinking of investing your time and money by going to see a financial adviser, but not sure how to proceed?

The first steps to take are to find a selection of advisers in your area who hold the qualifications and expertise in the areas that you need.

Here’s how….

We have sourced these steps for you from ASIC, industry publications and many years of experience answering these questions ourselves.

1. Check for listings within industry associations

   • There are two main associations within the financial advice industry. Follow these links to go to each ones find an adviser service.
     1. The Association of Financial Advisers (AFA)   http://www.afa.asn.au/findanadviser
     2. The Financial Planning Association of Australia (FPA) http://fpa.com.au/
   • You can also look out for the online register of financial advisers (as of March 2015) http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2014/Enhanced-register-of-financial-advisers

The register of financial advisers will include:

• • • the adviser’s name, registration number, status, and experience;
    • the advisers’ qualifications and professional association memberships;
    • the adviser’s licensee, previous licensees/authorised representatives and business name;
    • what product areas the adviser can provide advice on;
    • any bans, disqualifications or enforceable undertakings; and
    • details around ownership of the financial services licensee and disclosure of the ultimate parent company where applicable.

2. Check the adviser’s Financial Services and Credit Guide (FSCG)

   • This will outline:
     1. The services they offer
     2. How they charge and any additional payments or benefits
     3. Who owns the company the adviser works for and who they are affiliated with
     4. Any links to product providers (banks, fund managers and life insurance companies)

3. Check for a listed Australian Financial Services Licence (AFSL)

   and/or that they are employed or authorised to represent a business that holds an AFSL.

4. Check if they are aligned or non-aligned

   1. Do they work for and independently-owned planning house/firm?
      • This enables them to operate under their own licence and independently decide what products and strategies they offer.
   2. Do they work directly for a big bank or an advice firm that is owned by a big bank?
      • This means they usually recommend their employer’s products.

5. Check experience and qualifications

   • Usually this will be listed on the adviser’s website under their profile
   • Their profile should also have links to the FSCG.

6. Check the adviser is able to assist you with any current financial products

   • This is vital when it comes to superannuation. Can the adviser give advice about your current fund if it is not on their ‘approved product list’?

7. Check for an estimate on the cost of the advice.

   • The adviser should be open and up front about what you can expect to pay.

8. Check if the adviser offers annual or biannual reviews of your products.

9. Check if the adviser offers a Claims Care service and Post Claims Care service.

   1. Is there a cost involved with the claims care service?
   2. What is included in the post claims care service?

By now you should have one or more advisers on your shortlist. 

As such, ideally you need to be able to communicate easily with your adviser and be secure in the knowledge that they are invested in taking that journey with you.

Some extra steps you can take to discover more about the adviser are:

10. Check the company website to learn more about your adviser.

    1. Do they have a video or profile that further explains who they are?
    2. Are they someone you feel like you could relate to?
    3. Do you think they would fit with your business?
    4. Do they participate in industry events and awards?
    5. Are they sharing relevant, beneficial information in their blog?

11. Check to see if the adviser and the business have social media profiles.

    1. Are they active on LinkedIn, Facebook, Twitter, Google+, Pinterest or Instagram?
    2. What type of content are they sharing?

12. Do they offer regular general updated information that may benefit you?

    1. Does the website have a blog?
    2. Do they publish in LinkedIn?
    3. Do they offer an email newsletter?

I realise that this is an involved process to go through to identify the right financial adviser for you.

You need to make sure you have the right person beside you for the journey.