What is a financial advisor?

A financial advisor in Australia is a registered professional who provides advice on personal finances, investments, superannuation, insurance, retirement planning, and estate planning. The terms 'financial advisor' and 'financial planner' are used interchangeably and refer to the same registered profession under the Corporations Act 2001.

All financial advisors must be listed on the Australian Securities and Investments Commission's Financial Adviser Register. Since 2026, advisors must hold a relevant tertiary qualification (typically a bachelor's degree in financial planning or a related field, or a postgraduate qualification with a financial planning specialisation), pass the Financial Adviser Exam, complete a Professional Year of supervised practice, comply with annual Continuing Professional Development requirements, and abide by the Code of Ethics. There are about 15,500 registered advisors in Australia.

Advice in Australia is regulated under the Best Interests Duty introduced by the Future of Financial Advice (FOFA) reforms in 2013 and strengthened following the Hayne Royal Commission of 2018 to 2019. The duty requires the advisor to act in the client's best interests, provide appropriate advice, give priority to the client's interests in the event of conflict, and base recommendations on the client's full financial situation. The Quality of Advice Review reforms have introduced new categories of advice (including advice from super funds and limited advice on specific topics) to broaden access at lower cost.

A typical engagement begins with a free introductory meeting where the advisor discusses the client's situation and estimated cost. The advisor then prepares a Statement of Advice (SoA) documenting the client's circumstances, goals, recommendations, and reasoning. Fees are typically charged on a flat-fee, hourly, or asset-based basis (commonly 0.5 to 1 per cent of assets under advice for ongoing service, with a comprehensive Statement of Advice often costing 2,500 dollars or more). Conflicted remuneration, including most volume rebates and product commissions, has been banned since 2013, although grandfathered commissions on some legacy super and life insurance products were still being phased out into the early 2020s. Free or low-cost alternatives include MoneySmart, the National Debt Helpline, and intra-fund advice from super funds.