Check three things: are they on ASIC's Financial Adviser Register, do they hold a current authorisation under an AFSL, and does their Statement of Advice explain WHY they recommend specific products — not just which ones. A good planner shows their reasoning, discloses all fees upfront, and doesn't push products from a single provider.
What it depends on
The full answer depends on your specific circumstances. Here’s what matters.
Their registration status
Every financial planner in Australia must be registered on ASIC's Financial Adviser Register (FAR). You can search by name or adviser number at moneysmart.gov.au. If they're not on the register, they cannot legally provide personal financial advice. Check that their registration is current — not suspended or cancelled.
Their fee structure
Under the Corporations Act 2001, financial advisers must provide a Fee Disclosure Statement (FDS) annually and an opt-in notice every two years. Good planners explain their fees clearly: percentage-based (typically 0.5%–1.5% of funds under advice), flat fee, hourly, or a combination. Ask for the total dollar amount you'll pay — not just the percentage.
The quality of their Statement of Advice
A Statement of Advice (SOA) is the legal document your planner must give you before implementing any recommendation. A good SOA explains the reasoning behind each recommendation, discloses all conflicts of interest, and details the alternatives considered. If your SOA reads like a product brochure, that's a red flag.
Their approved product list
Most planners operate under an Approved Product List (APL) set by their licensee. This isn't inherently bad — but if your planner only recommends products from one provider (especially their own licensee), ask why alternatives weren't considered. The Best Interests Duty under the Corporations Act requires advisers to prioritise your interests.
The last 10%
What a qualified professional can add
The answer above covers the general position. Here’s where professional judgement — applied to YOUR specific situation — makes the difference.
- Assessing whether your current portfolio allocation matches your specific risk tolerance, time horizon, and life stage — not just a generic "balanced" recommendation
- Modelling the impact of specific life events (redundancy, inheritance, divorce, retirement date) on your financial trajectory
- Navigating the interaction between superannuation, personal investments, social security, and aged care — where the rules are complex and personal
- Providing the ongoing review and adjustment that a static plan can't — markets change, your circumstances change, legislation changes
Questions to ask before you engage one
If you decide to engage a professional, these questions help you evaluate whether they’re right for your situation.
What qualifications do you hold beyond the minimum requirement, and are you a CFP® or AFP® member?
How many clients do you personally manage, and how often will I actually see you versus a paraplanner?
Can I see a sample Statement of Advice before I commit — not the template, an actual de-identified one?
What percentage of your clients' funds are in products issued by your licensee versus external products?
What happens to my advice relationship if you leave this practice?
Your next step
If you're not sure whether your planner is serving you well, start by checking their registration on ASIC's Financial Adviser Register. Then request your last Statement of Advice and Fee Disclosure Statement and read them with fresh eyes. If something doesn't add up, explore our Financial Planning domain for more context.
General Advice Warning
The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. It is provided by Global Mutual Funds Pty Ltd (ABN 20 090 555 436, AFSL 222640) and should not be relied upon as a substitute for professional advice. Consider whether the information is appropriate before acting on it. Read our Financial Services Guide.