"I've had a poor experience with my former adviser. After paying a lump sum of fees, I discovered they were not able to help me with certain things they had previously claimed. How do I know that a financial adviser is trustworthy and is qualified to help me with what I need?"
- Question from Jade in Kenmore, QLD
Top answer provided by:
David Marginson
Hi Jade,
Good question. Finding a financial adviser that you feel comfortable with can be a challenge. A trustworthy financial adviser should tell you upfront if they can provide advice on your areas of concern. To determine if an adviser is right for you I would start by reviewing MoneySmart's resource here.
As financial advisers do not normally charge for the first meeting I would suggest you talk with a few to make your choice. Before holding the appointment check on the ASIC's Financial Adviser Register that they are registered. Their registration also lists the product areas they can provide advice on.
Then Moneysmart has a good list of questions to ask at your first meeting. These include:
-Their qualifications, main client base, and specialty areas
-What fees you will pay, how often and what you'll get in return
-How they'll manage your money
-How often you'll meet
-What information you'll receive and how often
-How they'll consult you on decisions
-How they'll monitor and manage your investments
-What commissions or incentives they receive from financial products, and how they'll choose products to recommend to you
-Who'll look after your account when they're away
-How they'll deal with complaints (see problems with a financial adviser to learn about the complaints process)
-How to end your agreement with them (including any penalties or notice periods)
The adviser should also give you a copy of their Financial Services Guide which should include their fees and charges, the products they advise on and that you are covered by their privacy policy.
At Professional Wealth Services, the six financial advisers are employed by a self- licenced company that is owned by the majority of the advisers. Being self-licenced means we do not have to recommend any other company’s products. Instead we source a range of best in class managed investment funds to build an approved product list that fulfils our clients’ investment needs. We source personal insurance options from multiple companies and have a range of partners to whom we can refer our clients to for mortgages, legal and accounting advice. PWS provide a holistic range of products and services to cater for our client needs whether they are 40 or 70. With COVID we have learnt to deliver our services in the office in North Sydney or over zoom anywhere in Australia.
So Jade if you discuss your needs with a number of advisers, and use the MoneySmart questions with each, you should be able to find an adviser who you trust and will meet your needs. Good luck in your search!
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.
Article by:
Comments0