Problems with a financial adviser

The right financial advice can help you achieve your financial goals. It's also important to know what to do if something goes wrong.

Know how to recognise a problem

Most advisers do the right thing. But sometimes things don’t go as expected. If you feel unsure, pressured or confused, it’s important to act early. This page explains the signs of a problem and the steps you can take to fix it.

Signs you may have a problem

You may have a problem with your financial adviser if they:

report push one solution, no matter what your goals are

report pressure you to sign documents you don’t understand

report give advice that doesn’t match your goals or risk level

report are not clear about how they earn money or what their advice costs

report make you feel uncomfortable when you ask questions

report leave you worse off than before you received the advice

report charge you for advice you never received

If you've lost money because your adviser acted illegally or gave you advice that was not suitable, you may get compensated.

Action to take if you have a problem

If you're unhappy with financial advice you've received or fees you've paid, there are steps you can take.

Act quickly if the advice doesn't look right, or if you've paid for services that you didn't receive.

Talk to your adviser

The first step is to talk to your adviser. Outline your concerns and ask how they plan to fix it. If it's about fees, ask them to explain each fee and what it covers. If you think the fees are too high, ask if they're willing to reduce them.

See tips for working with a financial adviser.

Make a complaint

If you’re not happy with the response from your adviser after you have spoken with them, you can make a formal complaint to the Australian Financial Services (AFS) licensee business that authorises them.

Internal dispute resolution

Check your adviser’s website or ask for their Financial Services Guide (FSG) to find their complaint process.

Your adviser must:

• acknowledge your complaint within 14 days
• give you a final response within 45 days

For more information, see internal dispute resolution tips from the Australian Financial Complaints Authority (AFCA).

Australian Financial Complaints Authority (AFCA)

If you're not satisfied with how your adviser has handled your complaint, you can contact AFCA.

AFCA is a free, independent service that helps resolve complaints from consumers and small businesses about financial service providers. Learn about the types of complaints that AFCA can consider. 

Industry association

You can also complain to the adviser's professional body or industry association if they belong to one. To find out if your adviser belongs to such a body or association, and which one they belong to, see the financial advisers register.

If your adviser is banned

Anyone who gives financial advice must hold an AFS licence or be authorised by an AFS licensee.

ASIC might ban a financial adviser for doing the wrong thing, such as:

• failing to act in the best interests of their client
• charging for services they have not provided
• providing false or misleading information
• giving advice that is not appropriate

Once an adviser is banned, they can no longer provide financial advice. The company that authorises them should contact you straight away to explain what will happen with your advice arrangements. They might allocate or let you choose another financial adviser from their business. Or you can choose to end your relationship with the AFS licensee.

Ending your relationship

You can end your relationship with your adviser at any time. When you do, take a few simple steps to protect your money and keep your records up to date.

check_box Let them know in writing and keep a copy for your records.

check_box Cancel any authorities you've given them, such as transaction authorities or access to bank accounts.

check_box Review the advice you've received. You can ask your new adviser to do this, using your SOA.

check_box Stop any ongoing fees. Ask your adviser or product provider to cancel the fees, or move them to your new adviser if you choose.

check_box If fees are deducted from your bank account, investment account or super fund, contact the provider and ask them to stop the deductions.

If you decide to transfer to a new adviser, see choosing a financial adviser for what to look for.