Last updated: 22 July 2026
A financial consultant can help you organise debt, prepare for retirement, review investments or make sense of a complicated financial decision.
They can also cost thousands of dollars.
That fee may be reasonable when the work is useful, the advice suits your circumstances and every cost is disclosed. It becomes expensive when the person is not authorised for the work, sells a product you do not need or charges an ongoing fee for services that never arrive.
The problem is that almost anyone can sound convincing during a friendly first meeting.
A professional office, polished website and confident explanation do not prove that the person is registered, experienced or suitable for your situation.
According to my research of current ASIC and Moneysmart guidance, your checks should cover the individual adviser, the business authorising them, the advice they can provide, the fees you will pay and any financial relationships that could influence the recommendation.
The questions below are designed to uncover those details before you sign an agreement or move any money.
General information only: “Financial consultant” is a broad business title. It does not automatically prove that someone can provide personal financial product advice. Check the person’s registration, authorisation and written service documents before acting on a recommendation.
Start by deciding what help you actually need
Do not begin by searching for the person with the most impressive title.
Begin with the problem.
You might need help with:
- Household budgeting.
- Debt repayment.
- Investment planning.
- Superannuation.
- Retirement income.
- Personal insurance.
- Business cash flow.
- Tax coordination.
- Estate-planning referrals.
Those services may require different skills and legal authorisations.
A consultant who prepares business forecasts may be very good at that work without being authorised to recommend super funds or managed investments. A registered financial adviser may provide personal investment advice but have little experience negotiating debt hardship.
Our comparison of a financial consultant and financial adviser explains why the title alone cannot tell you which service you are buying.
Question 1: What is your exact role?
Ask the person to describe their job without using marketing language.
A useful answer might be:
I am a registered financial adviser who provides personal advice about superannuation, retirement income and investments. I do not provide legal advice or prepare tax returns.
A vague answer might sound like:
I help people maximise wealth through tailored financial solutions.
The second answer does not explain what the person can legally advise on, which services are included or where their work ends.
Follow up with:
- Will you give me general information or personal advice?
- Will you recommend specific products?
- Will you arrange transactions?
- Will you manage investments after the advice is delivered?
- Which matters will you refer to another professional?
Question 2: Are you registered to provide personal financial advice?
ASIC maintains a Financial Advisers Register.
The register covers individuals authorised to provide personal advice to retail clients on relevant financial products.
Search the individual’s name, not merely the business name.
The register may show:
- The adviser’s current registration status.
- The business authorising them.
- Their employment history.
- Qualifications recorded for them.
- The financial product areas on which they may advise.
A person may not need to appear on that register when they only provide general information, business consulting or advice outside the relevant product categories.
That distinction matters.
If someone who is absent from the register wants to recommend a particular super fund, investment portfolio or retirement product based on your personal circumstances, stop and ask them to explain their authority in writing.
You can also use Moneysmart’s Financial Advisers Register search and guidance.
Question 3: Who holds the Australian financial services licence?
The consultant may operate under their own Australian financial services licence or work as a representative of another licence holder.
Ask for:
- The licence holder’s legal name.
- The Australian financial services licence number.
- The consultant’s adviser or representative number.
- The name of the business responsible for complaints.
The trading name on the office door may differ from the legal entity responsible for the advice.
This information should also appear in the Financial Services Guide.
Do not accept “the company handles all that” as a complete answer. You should know which company.
Question 4: What are you authorised to advise on?
Registration does not mean an adviser can advise on every financial product.
Ask which areas appear under their authorisation.
These may include:
- Superannuation.
- Managed investments.
- Securities.
- Retirement savings accounts.
- Life insurance products.
- Deposit products.
- Government debentures or bonds.
Then connect the authorisation to your problem.
An adviser may be permitted to discuss superannuation but lack experience with self-managed super funds. Another may specialise in insurance but rarely prepare complete retirement plans.
The register tells you what product areas the adviser may cover. It does not prove that they are the best person for every question within those areas.
Question 5: Which services are outside your scope?
This question often produces a more useful answer than asking what the consultant does.
A trustworthy professional should be comfortable saying:
- I cannot prepare your will.
- I do not provide debt counselling.
- I cannot lodge your tax return.
- I do not advise on direct property purchases.
- I need to refer this matter to a solicitor.
Be wary of someone who claims to handle investments, law, accounting, credit, property and insolvency without explaining the limits of each service.
Our guide to choosing between a financial consultant and an accountant explains where their work may overlap and where it separates.
Question 6: What qualifications do you hold?
Ask for the complete name of each qualification, the institution that issued it and whether it is current.
Common designations may include:
- Certified Financial Planner.
- Chartered Financial Analyst.
- Relevant university degrees.
- Postgraduate financial-planning qualifications.
- Specialist accreditation in areas such as aged care or self-managed super.
A qualification can show that the person completed a course or assessment. It does not replace the legal authorisation needed to provide regulated advice.
Ask how the qualification relates to the work you need.
A credential focused on investment analysis may not prove experience with household cash flow, insurance claims or retirement-income planning.
Our article on the difference between certification and licensing explains why the two checks should be completed separately.
Question 7: How much experience do you have with people like me?
“I have twenty years of experience” sounds reassuring.
Ask what that experience involved.
A consultant may have spent most of those years working with corporate clients, insurance sales or high-balance retirees. That background may not suit a young family with debt and a small investment account.
Ask:
- What type of clients make up most of your practice?
- How often do you work on cases like mine?
- What complications tend to appear?
- What would make you refer my case elsewhere?
When an adviser says, “From my experience, this strategy works well,” ask them to define that experience.
Was it used with clients in similar circumstances? What risks appeared? How did it perform when conditions changed?
A personal anecdote can begin a discussion. It should not replace evidence, calculations or a written explanation.
Question 8: Can you give me an anonymised example?
Privacy rules may prevent the consultant from naming clients or revealing personal details.
They should still be able to describe a general example without exposing anyone.
For instance:
We recently helped a couple approaching retirement compare paying down their mortgage with making extra super contributions. We modelled both options under several return and interest-rate assumptions.
Ask what made the example comparable to your situation.
Do not treat testimonials as proof that every client received a good result. Testimonials are selected by the business and may not describe fees, risks or disappointing outcomes.
Question 9: What will the complete advice cost?
Ask for the answer in dollars.
Financial advice may be charged through:
- An hourly rate.
- A fixed project fee.
- A plan-preparation fee.
- An implementation charge.
- An ongoing annual fee.
- A percentage of assets.
- A permitted commission or product payment.
Moneysmart’s guide to financial advice costs recommends comparing what you will pay and what you will receive.
A 1% annual fee equals:
| Amount under advice | Annual fee at 1% |
|---|---|
| $100,000 | $1,000 |
| $300,000 | $3,000 |
| $500,000 | $5,000 |
| $1,000,000 | $10,000 |
Ask whether the percentage fee rises automatically when your balance rises, even when the work remains the same.
Our guide to financial consultant costs explains the difference between hourly, fixed and ongoing arrangements.
Question 10: What is included in that fee?
A price means little without a service list.
Ask whether the fee includes:
- The first meeting.
- Research.
- Financial modelling.
- A written plan.
- Product comparisons.
- Implementation.
- Application paperwork.
- Meetings with your accountant or solicitor.
- Follow-up questions.
- Future reviews.
Find out what costs extra.
A fixed planning fee may exclude implementation. An ongoing fee may cover one annual meeting but charge separately for advice after a major life change.
The agreement should state the service in concrete terms.
“Ongoing support” is not enough.
Question 11: What other fees will the products charge?
The advice fee may be only one layer.
A recommended product may also charge:
- Administration fees.
- Investment management costs.
- Platform fees.
- Transaction costs.
- Insurance premiums.
- Performance fees.
- Brokerage.
- Foreign-exchange costs.
Ask for the combined annual cost in dollars at your expected balance.
A recommendation that lowers the adviser’s visible fee but places you in an expensive platform may not save money.
The written advice should distinguish between amounts paid to the adviser, their business, the product provider and any other party.
Question 12: Do you receive commissions, referral payments or incentives?
Ask the question directly.
The consultant may receive money or another benefit from:
- An insurance provider.
- A mortgage broker.
- An accountant.
- A property business.
- An investment platform.
- A product issuer.
- Another adviser.
Not every payment makes the advice unsuitable.
You need to know that the relationship exists and how it could influence the recommendation.
Ask:
- Who pays you?
- How much do they pay?
- Would you earn less if I chose another option?
- Do you pay anyone for referring me?
- Does your business own or partly own the recommended service?
Our comparison of fee-only and commission-based consultants can help you examine the trade-offs.
Question 13: Are you restricted to an approved product list?
Some advice businesses limit recommendations to products included on an approved list.
Ask:
- How many products are on the list?
- Who decides which products are included?
- Does the business have a financial relationship with any of them?
- Can the adviser recommend something outside the list?
- Were outside products considered for your case?
A restricted list does not automatically produce poor advice.
A narrow list that is not disclosed can create a problem. You may think the consultant compared the whole market when they reviewed only a small group of products.
Question 14: Who owns the advice business?
Ownership can create relationships that are not obvious from the brand name.
An advice practice may be owned by:
- The advisers working in it.
- A larger financial-services group.
- An investment platform.
- An insurance business.
- A private-equity investor.
Ask whether the owner manufactures or distributes any products the consultant may recommend.
The Financial Services Guide should help explain ownership, authorisation and associations.
Moneysmart says the Financial Services Guide should explain services, fees and links to financial products.
Question 15: What legal duty applies to the advice?
In Australia, the better question is usually not, “Are you a fiduciary?”
That language is commonly used in overseas material and may cause confusion.
Ask:
- Will this be personal advice?
- What best-interests obligations apply?
- How will you identify and manage conflicts?
- How will you show that the recommendation suits my circumstances?
ASIC explains that providers giving personal advice to retail clients must prioritise the client’s interests and provide advice that responds to the client’s objectives, financial position and needs.
You can read ASIC’s explanation of acting in a client’s best interests.
Question 16: How will you learn about my financial position?
A personal recommendation should be based on accurate information.
The adviser may ask for:
- Income records.
- Bank statements.
- Super statements.
- Investment records.
- Loan balances.
- Insurance policies.
- Household expenses.
- Family and dependant information.
- Retirement goals.
Moneysmart’s guide to working with a financial adviser recommends bringing documents that explain your income, debts, super, insurance and spending.
Be concerned when the consultant recommends a product after a short conversation and without checking your debts, income or access to emergency money.
A recommendation cannot suit facts that were never collected.
Question 17: What document will I receive?
Ask whether you will receive a Statement of Advice, another regulated advice document, a strategy paper or a general-information report.
A Statement of Advice should explain:
- The recommendations.
- Why they are being made.
- The information used.
- The risks.
- The fees and benefits.
- The work covered by the advice.
- Any areas excluded from consideration.
Read the assumptions carefully.
Check that the document records your income, debts, assets, expenses and goals correctly. A wrong balance or retirement date can alter the entire recommendation.
Do not sign merely because the document is long.
A complicated report can still contain weak advice.
Question 18: Which alternatives did you consider?
Ask the consultant to explain the other options.
For example, a recommendation to move super should compare:
- Keeping the existing fund.
- Changing the investment option within the existing fund.
- Completing a partial rollover.
- Moving the full balance.
- Doing nothing for now.
Ask why the chosen option is expected to leave you better off after fees, tax, insurance changes and implementation costs.
The answer should not be limited to recent investment performance.
Question 19: What could go wrong?
A recommendation should come with a direct explanation of risk.
Ask:
- How much could the investment fall?
- Could I lose insurance?
- Could the money become harder to access?
- Could the strategy create extra tax?
- What happens if my income drops?
- What happens if interest rates rise?
- What happens if I retire earlier than planned?
Risk should be explained in dollars where possible.
A 20% decline means $10,000 on a $50,000 investment and $100,000 on a $500,000 portfolio.
The percentage is the same. The experience is not.
Question 20: How do you decide how much risk I should take?
A questionnaire should not be the entire risk assessment.
The consultant should consider:
- How you react to investment losses.
- When the money will be needed.
- Your income stability.
- Your debts.
- Your cash reserve.
- The financial effect of a loss.
You may feel comfortable taking investment risk but lack the financial capacity to absorb it because the money is needed soon.
The reverse can happen. Someone with decades before retirement may have time for market recovery but feel unable to tolerate sharp falls.
Ask how the recommendation accounts for both.
Question 21: How will success be measured?
Be wary when the answer is simply, “We aim to beat the market.”
Your result should be connected to your goal.
Measures might include:
- Progress towards a retirement-income target.
- Debt reduction.
- Investment return after fees and tax.
- Whether the portfolio stayed within the agreed risk range.
- The amount of accessible cash retained.
- Insurance remaining suitable.
An adviser cannot control markets.
They can control the clarity of the plan, the costs they recommend, the risks they explain and the service they provide.
Question 22: When will the plan be reviewed?
A one-off plan and an ongoing service are different purchases.
Ask:
- How often will we meet?
- What will be reviewed?
- Will you contact me or must I contact you?
- What happens after a major life event?
- Will I receive a written review?
- Does the fee include new advice?
Moneysmart states that clients paying an ongoing advice fee should generally receive an annual review and must provide written consent for future ongoing fees. The adviser must also explain the services and fees for the coming year.
Read more in Moneysmart’s guide to ongoing advice arrangements.
Question 23: Who will actually look after my account?
The person you meet during the sales process may not be the person doing the work.
Ask:
- Who prepares the analysis?
- Who signs the advice?
- Who answers questions after implementation?
- Who handles the account when the consultant is away?
- Will junior staff perform routine reviews?
There is nothing automatically wrong with a team approach.
You should know who is responsible.
Question 24: What happens if you leave the business?
Advisers change firms, retire or take extended leave.
Ask:
- Who takes over the file?
- Will I be told before the handover?
- Can I choose another adviser?
- What happens to the ongoing fee?
- Can I obtain copies of all my documents?
A long-term plan should not depend entirely on one person remaining in the same job forever.
Question 25: How is my personal information protected?
The consultant may collect bank statements, identity records, tax information and details about your family.
Ask:
- How are documents uploaded?
- Where are they stored?
- Who can access them?
- How is identity verified?
- How will you contact me about sensitive transactions?
- What happens after a data breach?
Do not give a consultant your bank password, government login or one-time security code.
Our guide to online financial consultant services covers document security and remote meetings in more detail.
Question 26: How can I end the agreement?
Ask before signing, not after the relationship turns sour.
Find out:
- Whether notice is required.
- How ongoing fees are stopped.
- Whether an exit fee applies.
- Who keeps the records.
- How investments are transferred.
- Whether insurance or product access changes.
Moneysmart says an advice agreement can be ended, although its terms may include notice periods or other conditions.
Ask for the process in writing.
Question 27: How are complaints handled?
The Financial Services Guide should explain the business’s complaint process.
Ask:
- Who receives complaints?
- How should a complaint be lodged?
- When should you expect a response?
- Is the business an AFCA member?
- Which documents should you keep?
If a problem arises, begin with the firm’s internal complaint process.
If it remains unresolved and falls within its jurisdiction, the Australian Financial Complaints Authority may be able to provide free, independent dispute resolution.
Moneysmart also explains the steps to take when you have a problem with a financial adviser.
Question 28: Who is not a good fit for your service?
This question tests how clearly the consultant understands their own business.
A thoughtful answer might be:
We mainly work with people within ten years of retirement. Someone seeking urgent debt hardship help would probably be better served by a free financial counsellor.
A consultant who claims to suit every income, age and financial problem may be describing a sales market rather than a specialised service.
Questions to ask about superannuation advice
Super decisions may involve decades of savings, insurance and tax consequences.
Ask:
- Are you authorised to advise on superannuation?
- Why are you recommending a rollover?
- What will happen to my existing insurance?
- Have you compared staying in my current fund?
- What fees will rise or fall?
- Which investment option will receive the money?
- Could the transfer affect employer benefits?
- How will contribution limits be checked?
- What happens to my beneficiary nomination?
- How are you paid if I move funds?
Do not transfer an account until replacement insurance has been examined and, where needed, accepted.
Questions to ask about retirement advice
Retirement advice should go further than projecting one account balance.
Ask:
- How did you estimate my retirement spending?
- Are the figures shown in today’s dollars or future dollars?
- What inflation assumption is being used?
- How long is the money expected to last?
- What happens under lower investment returns?
- What happens if I retire early?
- How will health and housing costs be treated?
- How much money remains accessible outside super?
- What happens after either partner dies?
- How often will the withdrawal plan be reviewed?
Our article on retirement planning with a financial consultant explains what should appear in a complete retirement projection.
Questions to ask about debt advice
Paid advice is not always the right starting point for serious debt trouble.
Ask:
- Do you specialise in debt and hardship?
- Will you negotiate with creditors?
- Do you sell consolidation loans?
- Do you receive referral fees?
- Why should I pay for this rather than use a free financial counsellor?
- Could the plan put my home at risk?
- Are you recommending a formal insolvency arrangement?
- What happens to my credit record?
Our guide for people struggling with debt explains when a free financial counsellor may be more suitable than a paid consultant.
Warning signs during the first meeting
Pause the process when the consultant:
- Guarantees an investment return.
- Recommends a product before gathering your financial details.
- Refuses to explain fees in dollars.
- Pressures you to transfer money immediately.
- Dismisses questions about commissions or ownership.
- Asks for account passwords or security codes.
- Claims one strategy suits everyone.
- Will not provide registration details.
- Creates a deadline that cannot be verified.
- Discourages you from seeking another opinion.
Urgency can be genuine when a legal, tax or application deadline exists.
The consultant should be able to show you the date and explain the consequence of missing it.
Do not be impressed by unsupported data claims
Financial businesses often use phrases such as “Our data shows” to make a claim sound authoritative.
Ask:
- What data?
- How many clients or investments were included?
- What period was measured?
- Were fees and tax included?
- Was the data independently checked?
- Can I read the method?
A chart without a sample, date or method is marketing material, not useful evidence.
A simple consultant scorecard
Our data shows how a structured comparison can expose differences that are easy to miss during a friendly conversation. The figures below are a worked example, not a survey of the advice industry.
Score each area from zero to two:
- 0: The information is missing or concerning.
- 1: The answer is partly clear.
- 2: The answer is clear and supported in writing.
| Comparison area | Consultant A | Consultant B |
|---|---|---|
| Registration and authorisation verified | 2 | 0 |
| Experience matches your needs | 2 | 1 |
| Fees supplied in dollars | 2 | 1 |
| Conflicts and referrals disclosed | 2 | 0 |
| Service scope supplied in writing | 2 | 1 |
| Risks and alternatives explained | 2 | 1 |
| Review service defined | 1 | 1 |
| Exit and complaint process explained | 2 | 1 |
| Total | 15 out of 16 | 6 out of 16 |
The score does not replace judgement.
It helps you compare the same information across candidates rather than choosing the person who gave the smoothest presentation.
Documents to request before signing
Ask for copies of:
- The Financial Services Guide.
- The written fee proposal.
- The service agreement.
- The privacy policy.
- The complaint process.
- Any ongoing-service schedule.
- Product disclosure documents where a product is proposed.
- The Statement of Advice when personal advice is prepared.
Read them away from the meeting.
Compare verbal promises with the written service. When the documents say something different, ask for the inconsistency to be corrected before signing.
Prepare your own information
The quality of personal advice depends partly on the information supplied.
Bring:
- Income details.
- Household expenses.
- Debts and interest rates.
- Super statements.
- Investment records.
- Insurance policies.
- Your main financial goals.
- Questions you want answered.
Tell the consultant about debts, health issues, family obligations and planned expenses.
Do not hide a financial problem because it feels embarrassing. The missing information may make the recommendation unsuitable.
Interview more than one person
One meeting gives you no basis for comparison.
Speak with at least two candidates when the decision involves a large amount of money or an ongoing relationship.
Ask both people the same questions.
Compare:
- Their understanding of your problem.
- The work proposed.
- The total cost.
- The risks discussed.
- The clarity of their answers.
- The pressure placed on you to proceed.
Our guide to choosing a financial consultant provides a broader comparison process.
Your final hiring test
Before agreeing to anything, make sure you can answer these questions:
- Who is legally responsible for the advice?
- What work will be completed?
- What will I pay in dollars?
- Who else receives money?
- Which products can the consultant recommend?
- What risks could affect me?
- What alternatives were considered?
- How do I end the arrangement?
- Where do I complain?
- Do I understand the recommendation without relying on sales language?
Do not hire someone because you feel awkward saying no.
A suitable consultant should expect questions. They should supply documents, explain fees and give you time to consider the proposal.
The person handling your financial future does not need to be the most charismatic candidate.
They need the right authority, relevant experience and a service you can understand.
External sources
- ASIC: Financial Advisers Register
- ASIC: Registration for relevant providers
- ASIC: Acting in the client’s best interests
- Moneysmart: Choosing a financial adviser
- Moneysmart: Financial advice costs
- Moneysmart: Working with a financial adviser
- Moneysmart: Problems with a financial adviser
- AFCA: Investments and financial advice complaints