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Take your time to finding a planner and do some research. Aim to talk with a few different planners before you decide on one.
If you've followed our tips, then you would have made sure that your prospective planner is a member of the FPA, and perhaps even a CFP professional. Whenever you talk with a prospective financial planner, it's good to ask lots of questions. We've put together a list of 10 specific questions to use when interviewing a planner.
| 1. Can I see your Financial Services Guide? |
| The Financial Services Guide (FSG) explains the nature of the financial services being offered, the fees and commissions charged and how the person providing the service deals with customer complaints. A financial planner is required by law to give a client a FSG before providing any financial advice. |
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| 2. How long have you been a financial planner? |
| The more experience the better. If the planner has less than two years experience, ask if someone else within the financial planning business would take a look at the advice as well. |
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| 3. What do you specialise in? |
| Some planners specialise in certain areas – retirement planning, high net worth planning and so on. You should also ask if the planner will implement the plan or refer it to someone else. |
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| 4. What kinds of clients do you mostly see? |
| Find out a bit about the types of people a planner advises. Ask a few questions about the planner’s approach to ensure they are in tune with your lifestyle and needs. You should look for someone who regularly works with people in your situation with similar concerns like yours e.g. taxation, super, retirement planning or social security. |
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| 5. How do you charge for your services? |
The planner should be able to give you an estimate of the cost of advice based on the work you are asking for and the options for paying. The planner must, by law, let a client know all the costs and sources of potential income to them arising from the financial plan, e.g. if they receive payments arising from financial products being
recommended. |
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| 6. Will I receive written advice? |
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By law, the financial planner must provide a written Statement of Advice (SoA) if personal financial advice has been given. The SoA should include:
- The advice the planner has given the client
- The information on which it is based
- How they get paid (including any commissions)
- Any interests, associations or relationships that could
influence the advice given. |
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| 7. How often will you review my advice and what will it cost me? |
Every plan needs to be reviewed, so you should ask how much the planner will charge for ongoing reviews and how often they will be carried out. As your goals and life
changes, so should your plan. |
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| 8. If I have any issues with the planner’s strategy how will they be resolved? |
| You should ask at the beginning what happens if you don’t want to accept the planner’s advice; at what stage you become obliged to make a payment; and what happens should you want to terminate the planner’s services. |
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| 9. Who authorises you to give advice and are you licensed by ASIC? |
| Ownership of your financial planner’s business can influence the services and products you’re offered. Many advisory businesses are owned by major financial institutions like banks, fund managers and life insurance companies. Even if they operate under a different name, the FSG will tell you if they’re owned or associated with other companies. Other financial advisory businesses are independently owned. Both work under the same legal requirements to give appropriate advice to their clients. In fact, by law, any person or company that provides personal financial advice is required to have an Australian Financial Services Licence (AFSL) issued by ASIC or be authorised by a licensee. |
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| 10. How does the planner keep up-to-date with everything that’s happening? |
If you’re talking to an FPA member, then you will already know that they are committed to high professional standards and a code of ethics. But it’s a good idea to
hear how a planner keeps abreast of issues through courses and training run by universities, associations and other professional bodies. |
Want to know more?
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*FPA research on consumer attitudes to financial planning
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