5 questions to ask

Stuart Wemyss, of ProSolution Private Clients, has a five-point test to help you find the right planner. Look for one who:

1 Takes no commissions, referral fees or kickbacks. This ensures that they won’t make any money from their recommendations about property, shares and super.

2 Offers fixed fees. Make sure they do not charge a percentage fee on investments as this creates a conflict. Independent advisers should charge a fixed monthly, quarterly or annual fee or an hourly rate.

3 Has nothing to sell you. The planner’s business should not make any money from selling investments. This includes its own managed funds. Some planners have business relationships with property developers and receive commissions from recommending properties to their clients. Even recommending a buyer’s agent can be problematic.

4 Is privately owned with an AFS licence with no links to banks or investment providers.

5 Demonstrates deep knowledge of all asset classes, not just shares and property. “If you walk into a Ford dealership, they will sell you a Ford. If you walk into a Holden dealership, they will sell you a Holden. If you visit an independent dealership, they’ll likely know Ford and Holden cars equally well and, therefore, be able to recommend which one suits your circumstances best,” says Wemyss.

In addition to being certain of a financial planner’s independence, Wemyss says verifying their experience and relationship skills is crucial.