Consulting an experienced financial planner enables you to actively plan for your future, rather than leaving it to chance. However, as with a good accountant and a good solicitor, how do you find a good financial planner who has the experience, industry knowledge and reliability to meet your needs?

Finding the right financial planner for you requires a bit of homework on your part. It is your right (and responsibility) to ensure the financial planner has the background, expertise and methods of operation that suits your needs.

Checklist

To help you find a professional, ethical and experienced financial planner you can work through the following steps.

 

1

Ask your friends, family or work colleagues

It’s always best to ask around, as knowing someone who has dealt with the planner gives you an idea of their personality and history. However, keep an open mind ... everyone’s circumstances are unique.  So what works for your friends and family may not work for you

2

Make a short-list of potential planners

This list will allow you to compare your options.

3

Is the planner a member of a professional body?

Membership of a professional association or body (refer below) means that the financial planner is bound by the by-laws of the organisation including ethical standards

4

Financial Services Guide

This outlines the services offered, costs and whether commissions are paid.  DO NOT DEAL WITH A PLANNER WITHOUT AN FSG!

           5

Transparent reporting

Discuss with your planner how they are remunerated and how they provide their advice. At a minimum, the planner should:

  • Clearly outline to you how they are remunerated and the structure of any on-going service
  • Confirm that they will provide a written Statement of Advice, outlining their strategy and product recommendations
  • Confirm that the financial planner has appropriate professional indemnity insurance (this protects you in the event of negligent advice)

6

Registration with ASIC

The financial planner must hold either an Australian Financial Services Licence or be an authorised representative of a Australian Financial Services Licencee

7

Ask questions!

Do not be afraid to ask questions.  Remember that the financial planner is your adviser.  Challenge them and ensure you fully understand the advice provided and the reasons behind the strategy.

8

A lasting adaptable relationship

Make sure that you are comfortable dealing with your financial planner and that they offer to undertake regular on-going reviews (as no financial plan is “set and forget”!)

 

Selecting a good financial planner is a decision for the longer term and one that should not be left to chance. Remember it is your financial future so ensure you are comfortable with the financial planner you select and that they can partner you on your financial journey.