How to choose an Adviser
You'll be working closely with your financial adviser, so it's important you choose one you feel comfortable with. You should also ensure they have the qualifications necessary to provide you with the financial advice you're looking for.
Seven questions to ask your financial adviser:
1. What financial products and/or services can you provide?
The type of product, advice or service a financial adviser can provide you with is dependant upon their qualifications and authorisation. The adviser's disclosure statement will tell you this information.
2. Could I have a copy of your Disclosure Statement?
Disclosure Statements are documents that all financial advisers must provide to their customers before they can offer personalised advice or recommendations about any financial product. They detail information about the adviser, including how they are paid and what you can do to resolve any issues or disputes that may arise.
3. What is your approach to financial planning?
To provide you with a financial product or service, a financial adviser may have a simple or a complex approach to financial planning. Find out what process your adviser will follow when they provide financial products and services.
4. How much do you usually charge?
Get an estimate of possible costs. Some financial advisers charge an hourly rate or flat fee, while others may receive payment through commissions on the products they provide. This should also be explained in their Disclosure Statement.
5. What do I need to know about risk?
Any investment involves some risk. Usually, the higher the potential for returns, the higher the level of risk. Your financial adviser should identify the level of risk you are prepared to take before recommending any investments.
6. Can I have a written recommendation?
You should ask for a written plan or recommendation before you agree to any strategy. It should include the reasons behind their recommendation.
7. Will my financial plan change as my circumstances and needs change?
Yes your financial plan should change as your circumstances and goals change. Your financial adviser should help you regularly review your circumstances and plans to ensure that you remain on track to achieve your goals.
A disclosure statement for your Adviser is available, on request and free of charge.