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Working with a financial adviser

Once you’ve chosen a financial adviser, it helps to know what to expect. This page explains how to prepare for your first meeting, understand your financial plan and keep your financial goals on track.

What a financial adviser does

Financial advisers are professionals who can help you plan and manage bigger financial decisions. They can help you set financial goals so you feel confident that your future plans are achievable. If you’re not on track to achieving your goals, an adviser can help you put the right strategies in place or assist you to set more realistic goals.

Financial advice can be useful at turning points in your life. Like when you're starting a family, being retrenched, planning for retirement or managing an inheritance.

Once you’ve chosen a financial adviser, it’s time to plan how to work with them.

Preparing to see an adviser

A bit of preparation makes your first meeting easier. Think about what you want from the advice and what’s most important to you right now. You don’t need everything sorted — just a sense of your goals.

An adviser will need information about your personal situation, such as your age, whether you're in a relationship, whether you have dependents, your objectives and how you plan to meet them.

Bring documents that help the adviser understand your financial situation. These may include:

Think about your objectives and any questions you want to ask. This helps you get the most from the meeting.

What to expect at your first meeting

Your adviser should explain:

help_center the services they offer and what they can advise on

help_center how they structure the fees for their advice

help_center how they will obtain the information they need about you to prepare your financial plan

help_center how long they will take to prepare your financial plan

You're not obliged to go any further than the first meeting. If you don't think the services being offered will be good value for money, you can end the business relationship there.

Getting to know you

Before providing you with personal advice, your adviser should collect information about you to understand your objectives, financial situation and needs. This may be directly from you or from other parties, like your super fund, if you give them permission.

They may also ask you to complete a questionnaire to work out how much investment risk and volatility you're prepared to accept in an attempt to achieve your objectives. This will help them recommend suitable investments for you.

If you decide to get advice

If you move forward, your adviser will prepare a Statement of Advice (SOA). This document sets out their recommendations, why they’re being made and the steps to take. Take your time reading it. Ask questions if anything is unclear. A good adviser will explain things in plain English and make sure you feel confident about the plan.

Check that your Statement of Advice:

check_box addresses your financial goals and personal situation

check_box lists accurate financial details, such as your assets, debts, income and expenses

check_box explains what the advice covers (and doesn't cover)

check_box explains how the recommended strategy fits your financial goals, risk profile, time frame, and financial situation

check_box explains the level of risk associated with the investment strategy

check_box explains how investments will be held and administered — for example, through an investment platform

check_box details how any recommended products will assist you in achieving your objectives

check_box explains the pros and cons of switching to another financial product (for example, another super fund)

check_box clearly shows all the fees you’ll pay, how they’re paid, and who they're paid to

check_box sets out any benefits you might lose and any other significant consequences if you proceed with the advice

check_box details any gifts or other benefits (including commissions) received by the adviser or by a person who referred you to the adviser

check_box discloses any conflicts of interest that the adviser has

Don't feel pressured to accept an adviser's recommendations. Don't sign anything unless you understand and agree with what you're signing.

Tips to protect your money:

  • Don't give your adviser power of attorney.
  • Never sign a blank document.
  • Put a time limit on any authority you give to buy and sell investments on your behalf.
  • Insist all correspondence about your investments are sent to you, not just your adviser.
  • Keep all your paperwork and electronic files in one place.
  • For investments, make payments payable to the product provider (not your adviser).
  • Regularly check transactions on any investment accounts.

Keep your plan on track

Your goals and circumstances can change, so it’s important to check in with your adviser. Let your adviser know if something big changes in your life — a new job, a new child or a shift in income. This helps keep your plan up to date.

If you're paying an ongoing advice fee, your adviser should review your financial situation and meet with you at least once a year.

At this meeting, discuss:

Every year an adviser must seek your written consent to charge you ongoing advice fees. They must also give you details of the services you will receive, and fees you need to pay, during the upcoming year. This may occur during the meeting or electronically.

Ending an agreement 

You can end the agreement whenever you want to. Check the terms of your ongoing fee arrangements for any notice periods or fees. If you move to a new adviser, ask for copies of your documents so the handover is simple.

If you need help, ask your adviser to explain the process. 

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