MORE than 19,000 financial advisers are listed on the Australian Securities and Investment Commission’s Financial Advisers Register launched in March.
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The register contains details of all people employed or authorised, directly or indirectly, to provide personal financial advice to retail clients on investments, superannuation and life insurance.
It relies on financial planners to ensure their details, including whether they have ever been banned from practising, are kept up to date. Fines of up to $76,500 will apply for any found to have given false information.
ASIC has also updated the information about choosing a financial adviser on its MoneySmart website
ASIC deputy chairman Peter Kell said the register would allow people to find out about potential advisers before making a decision.
“We will now focus our efforts on the second stage of the register, which will capture financial adviser qualification, training and professional membership details to be completed and on the register by the end of May,” he said.
“The commission encourages consumers to visit the MoneySmart website to check out a financial adviser they are thinking of dealing with and do some homework before they proceed.” Late-fee penalties will apply to advisers who fail to register by September.
ASIC advises consumers choosing a adviser to:
- Decide what specific areas they want advice in and what their needs and objectives are.
- Search the Financial Advisers Register to check an adviser’s history and employment status.
- Ask about an adviser’s experience and qualifications in the consumer’s area of interest.
- Check whether the adviser can provide advice on products the consumer already owns. n Understand how the adviser will be paid before engaging them.
- Get information about their finances and the advice process to ensure the best chance of meeting financial goals.
