Choosing an Investment Adviser
Do I need an adviser?
If you are confident of your own knowledge and experience
about investment choices, then you may not need a financial
adviser either. But the decision on where to invest is
only part of the equation; often, the taxation and social
security ramifications of your decisions are equally important
and you may not be skilled in those areas.
Choosing a financial adviser
- Your adviser should understand your financial needs
and goals. They should give you advice that suits those
needs.
- Only deal with a licensed adviser, their employees
or authorised representatives.
- Before giving you investment advice, your adviser
must give you a financial services
guide. The guide will explain how your adviser will
deal with consumer complaints, what services they offer
and how they are paid.
- Find out about commissions. Advisers must tell you
about all commissions they receive from your investments.
They must also tell you all other important benefits
they may get as a result of your investments, for example
free holidays, or a reduced mortgage interest loan.
You have a right to know because these benefits could
sway the judgement of the adviser. You should also find
out if the adviser, or their company, has any links
with the owners of the businesses they recommend.
- Find out about any conflict of interest. Your adviser
must tell you about any financial or other interest
they have that might influence the advice they give
you. This is what the expression 'disclosure of interest'
in stockbrokers' reports and financial plans means.
By Australian Securities and Investment Commission
