When it comes to hiring the services of a financial advisor within Australia, you need to be extra careful. Just about anyone can call themselves a financial advisor, as it doesn’t require much qualification. They might also refer to themselves as a financial planner or even a financial coach.
That being said, a quality financial advisor can help you save a lot of money and set you up financially for the future. People use them to attain their financial goals and also protect their nest egg and assets.
Not all financial advisors are the same; there are ones for estate planning, investment management, or even just for someone buying a house. Given this, you must secure the services of the right financial advisor for your specific needs.
In this article, we’ll cover the important things you need to look for when seeking the services of a financial advisor within Australia.
Are They Licensed?
A financial advisor needs to be licensed to provide financial advice to clients. They can hold a license individually or be authorised as a representative of a service provider. You can use ASIC to find them; all licensed financial advisors will be registered there.
Are They FoFa-Compliant?
When looking at prospective financial advisors, you should look to see if they’re FoFa-compliant. FoFa — The Future of Financial Advice — reforms have put a stop to conflicted forms of remuneration among other things.
Financial advisors can no longer recommend or suggest products and strategies that benefit them the most concerning commissions. The general idea of FoFa-compliance is that they must prioritize your interests, not their own.
What Is Their Level of Education and Experience?
The most obvious aspect you should be looking at when looking for the right financial advisor is education and experience. You need to understand what their knowledge and attainment are, both in the field and through accredited learning/educational institutes.
It’s key that you look for a prospect that is strong in both education and experience. You need someone who has the qualifications and real world expertise. You can begin by taking a look at their website to find out any information that you can.
Do They Have Any Certifications?
When looking for a financial advisor, it’s a good idea to look to see if they hold any certifications. This is a good way to gauge how committed they are to increasing their knowledge and skill set. Also, make sure you research what the requirements for certifications are.
What Is Their Fee?
Obviously one of the primary concerns of hiring a financial advisor is how much they charge. There are several different pricing models that they could be using. For example, they could charge you per hour; alternatively, they could charge you a flat fee.
Australian Financial Advisors
A quality financial adviser will work with you to map and outline your financial plans, goals, and overall journey. When looking for the right financial advisor you need to know what you’re looking for.
Whether you’re looking for a financial advisor Sydney or one in any other city in Australia, make sure you do your homework. Make sure they’re licensed, Fofa-compliant, have a solid educational background, experience, certifications, and a reasonable fee.
