Choose the level of help the decision needs
General information explains rules and products but does not consider whether a decision suits you. Personal financial advice considers your objectives, financial situation and needs. Some funds offer limited advice about their own products, while comprehensive advice may cover super alongside tax, insurance, debt, retirement and estate planning.
A simple account question may only require the fund or ATO. A large contribution, retirement-income strategy, insurance replacement, SMSF, redundancy or family-law issue may justify licensed personal advice and separate tax or legal input.
Check the adviser and the service
Use ASIC’s Financial Advisers Register to check the adviser’s status, authorisations and history. Ask who holds the licence, what areas the adviser can cover and where they must refer to another professional. Membership of an association or a social-media following does not replace the register.
Request the scope, process and total fees in writing. Understand whether you are paying a fixed amount, hourly fee, asset-based fee, insurance commission or ongoing arrangement. Ask what products or strategies the adviser cannot recommend and what conflicts influence the shortlist.
Judge the advice by its reasoning
Good advice should connect each recommendation to a goal, explain assumptions, compare reasonable alternatives and describe risks and costs. You should understand why acting is expected to improve your position and what would cause the strategy to be reviewed. Do not sign an authority or product application you cannot explain back.
Keep the advice document, disclosures and implementation records. Check that rollovers, contributions, insurance and investment changes were completed as intended. For ongoing advice, decide in advance what work you expect during the year rather than paying solely for the possibility of a future call.
Quick reference
Key things to remember
- Funds may provide general information or limited advice about their products.
- Personal advice should come from an appropriately licensed provider.
- Ask how the adviser is paid and what conflicts exist.
- You should understand the recommendation, alternatives, costs and risks.
Put it into practice
Your next steps
- 01
Define the decision you need to make.
- 02
Check the adviser on ASIC’s Financial Advisers Register.
- 03
Request total first-year and ongoing fees in dollars.
- 04
Take time to read the Statement of Advice.
Check the source
Official information
Super and tax rules change. These primary sources are the right place to verify the details before you act.