In this guide
- ASIC Financial Advisers’ Register
- ASIC Banned and Disqualified Persons Register
- Warning sign 1: An adviser not having an AFSL
- Warning sign 2: A financial adviser asking you to pay investment money directly into their account
- Warning sign 3: An adviser operating under multiple company names
- Warning sign 4: An adviser failing to act in your best interests
- Warning sign 5: An adviser using your funds without your authorisation
- Warning sign 6: A financial adviser or advisory firm advertising above-market investment returns
- Warning sign 7: An adviser recommending products without appropriate qualifications or registrations
- Warning sign 8: An adviser trading in investments when unauthorised to do so
- The bottom line
Choosing a financial adviser is an important decision that can have major consequences. If you pick a good one, they can help set you up for long-term wealth and peace of mind. Pick a bad one, and you could lose some or all of your life savings.
We’ve all seen the horror stories and while they are relatively rare, it pays to be vigilant and identify warning signs that your adviser may not be acting in your interests. Or that you should not sign up with an adviser in the first place.
ASIC Financial Advisers’ Register
Fortunately, there are systems in place to help protect consumers. Financial advisers in Australia must either be licensed by the Australian Securities and Investments Commission (ASIC) or be an authorised representative of an Australian Financial Services Licence (AFSL) holder (such as a registered company).
