How To Check You Financial Advisors Credentials

Banking Royal Commission wastes no time to highlight extend of problems with banking and the advice sector.  Consumer advocate for Financial Rescue, The Hon. Bernie Ripoll, wants to remind investors and those seeking financial advice that there are many industry professionals doing the right thing and putting their clients’ interests first.

“Given the evidence to date from the Royal Commission it’s no wonder that Australians may feel like they are looking for a needle in a haystack to find an ethical Financial Advisor,” said Mr Ripoll.

Mr Ripoll warns consumers to always check that the person giving them financial advice is properly licensed by the regulator ASIC.  You can check their licensing on ASIC’s Financial Advisor Register at moneysmart.gov.au.  Their Australian Financial Services License (AFSL) authorises them to give financial advice. 

“If the advisor does not have an AFSL you may receive little protection from services such as the Financial Ombudsman Service if something goes wrong,” said Mr Ripoll.

Mr Ripoll also warns when choosing the right financial advisor, to always ensure they have the appropriate education and qualifications and are industry regulated.

“The first sign of credibility and someone who operates with the highest ethical standards is a Certified Financial Planner (CFP),” said Mr Ripoll.  The CFP qualification is recognised in over 26 countries around the world and ensures that the person giving you financial advice upholds the appropriate knowledge and ethical framework to guide you through your financial journey.