Choosing an adviser - 17 questions to ask

Choosing a financial adviser is an important decision - it's your money at stake! After all, a good financial adviser can set you up for life. Free advice may be worth as much as it costs. You're seeking a professional service, so be prepared to pay for it. That's why it's in your interests to shop around.
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Questions to ask What to look for

Licence

1. What licences do you and your firm hold?

 

 
  • Should be licensed by the Australian Securities & Investments Commission (ASIC)
  • Services offered are authorised on the licence

Qualifications

2. What is your role within the firm?

 

 

3. What are your qualifications?

 

 

Adviser's experience

4. What experience do you have in giving financial advice?

 

 
  • Years of experience in advising or exposure to the financial planning industry

Specialisation

5. What area of financial advice do you specialise in?

 

 
  • Some advisers may specialise in large corporations, individual wealth building, taxation, estate planning or retirement

Fees

6. Do you charge for the initial consultation?

 

7. Do you charge for establishing a portfolio?

 

8. Do you charge for annual or regular reviews?

 

9. Do you charge for amending a portfolio?

 

10. What fees are received from associates?

 

 
  • No hidden or excessive fees and charges

Commissions

11. Will you or your firm receive a fee, or any other incentive payment, from the investments I make?

 

 
  • Nature and size of any commission and/or incentive paid to financial advisers (usually disclosed in the information booklets, product disclosure statements or brochures of the investments chosen)

Research

12. What is your source of research?

 

 
  • Comprehensive research facilities, and access to up to date financial information

Personalised plan

13. How do you choose the investments you recommend?

 

 

14. How do you determine what's suitable for me?

 

 
  • Personalised plan that meets your specific needs
  • Independent approach to recommending investment products
  • Be wary of advisers who recommend over 50% high-commission products, or only one or two products

Services

15. What services am I entitled to receive?

 

 
  • For example, regular reviews on the performance of your portfolio, client newsletters and seminars
  • Ideally, follow-up and ongoing service

Financial Services Guide

16. Can you provide me with a Financial Services Guide?

 
  • The Financial Services Guide identifies the adviser, describes their service, fees and charges, and outlines your basic rights including complaint procedures

Client testimonials

17. Can you provide testimonials from existing clients?

 

 
  •  Evidence of customer satisfaction
Trusting your adviser
Even if you can tick every box ultimately you need to feel comfortable with your chosen financial adviser. It comes down to trust, and that's probably only something you can work out face-to-face. You are aiming to build a trusting relationship that will sustain into the future.

BT's Adviser Referral Program can help you to quickly find a list of financial advisers near you.
Find out more about investment
Download a copy of Investing Truths (PDF, 279 KB).
Find a financial adviser using BT's Adviser Referral Program.
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