How to choose a financial adviser in Australia: ASIC register and key questions

Who is legally allowed to give financial advice in Australia

To practise as a financial adviser in Australia, a person must:

Be registered in ASIC’s Financial Advisers Register — searchable at moneysmart.gov.au
Hold a relevant degree-level qualification plus a professional designation
Have completed supervised work experience
Have passed the national financial adviser examination (FASEA exam)

Always check the register before engaging an adviser — this takes less than a minute and confirms whether they are authorised.

Three fee structures — understand before you meet

Fee-for-service

You pay a flat fee or hourly rate. The adviser earns nothing from product commissions. This structure has the least conflict of interest.

Commission-based

The adviser receives a commission from the product provider (insurance company, managed fund). Commissions on investment products are heavily restricted in Australia, but remain common in life insurance. Risk: The adviser may favour products that pay a higher commission.

Asset-based fee (percentage fee)

A percentage of the assets they manage for you (typically 0.5–1.5% per year). Can be reasonable for large portfolios, but always assess the value delivered against this ongoing cost.

The Financial Services Guide (FSG)

Every financial adviser must give you a Financial Services Guide before providing any advice. The FSG must clearly state:

What services they provide
How they are paid (fees, commissions or both)
Who holds their Australian Financial Services Licence (AFSL)
How to make a complaint

If an adviser is reluctant to share their FSG or cannot explain their fee structure — that is a warning sign.

Five questions to ask before hiring an adviser

“Are you registered in the ASIC Financial Advisers Register?” (verify this yourself beforehand)
“What is your fee structure? Do you earn any commissions from products you recommend?”
“Are you an independent financial adviser?” (independent means no commissions and no institutional tie)
“What is your specialisation?” (superannuation, investment, insurance, retirement planning…)
“Will you provide a Statement of Advice (SOA) in writing?” (a written SOA is legally required for specific advice)

When to use a financial adviser

Planning for retirement or superannuation optimisation
Receiving a large lump sum (inheritance, property sale, redundancy payout)
Building or rebalancing an investment portfolio above $50,000
Taking out life insurance or income protection insurance
Structuring finances before buying an investment property

For routine annual tax returns, a tax agent or accountant is the right choice — lower cost and appropriately scoped.

If something goes wrong

AFCA (Australian Financial Complaints Authority) — free for consumers: afca.org.au
ASIC — report professional misconduct: report.asic.gov.au