Independent Financial Advice
What Is An Independent Financial Adviser? A Legal Term Few Can Use.
In Australia an adviser cannot simply call themselves independent. The law sets a test, and many in the industry do not pass it. I do. Then I go one step further, which matters more.
$330, credited against your advice fee. If you do not need advice, I will tell you.
Four consultations a week.
The Legal Test
Under section 923A of the Corporations Act, an adviser can only call themselves independent, impartial or unbiased if all of these are true.
- They receive no commissions
- They receive no payments based on the volume of business they send a product provider
- They receive no gifts or other benefits from product providers that could influence them
- They have no ownership links or other ties to the products they recommend
Why So Few Qualify
Many advisers are licensed through a group with ties to products, or take commissions on insurance, or both. Any one of those rules them out. It does not make them dishonest. It does mean someone other than you has a hand in how they are paid.
The Step Further
Independence stops the product from paying the adviser. It does not stop your balance from paying the adviser, forever. An independent adviser can still charge you 1% a year.
I am independent, and I charge no ongoing fees. Both together is what I do. That is the whole pitch.
| Comparison | Most Advisers | Independent Adviser | Independent, One-Off (Me) |
|---|---|---|---|
| Commissions from products | Often, on insurance | No | No |
| Ties to a bank, fund or platform | Often | No | No |
| Ongoing fee on your balance | Usually | Often | No |
| You pay | Every year | Every year | Once |
How To Check Any Adviser
- Ask: can you legally call yourself independent under section 923A?
- Read their Financial Services Guide. Payments and ties must be disclosed there
- Look them up on the ASIC Financial Advisers Register
- Ask what they earn if you do nothing they recommend
What is an independent financial adviser?
An adviser who meets the test in section 923A of the Corporations Act: no commissions, no volume payments, no gifts or benefits from product providers and no ties to the products they recommend.
Is fee-only the same as independent?
No. Fee-only describes how the client pays. Independent is a legal status about who else pays or influences the adviser.
Are independent advisers more expensive?
Not necessarily. Mine is a fixed fee from $6,600, paid once. Many non-independent advisers cost more than that every year.
Do you take insurance commissions?
No. If you need insurance I tell you what to get and where, and I am paid nothing by the insurer.
Where are you based?
Sydney, at 14 Martin Place. I advise clients across Australia by Zoom, Teams or phone.
General advice only. It does not take your objectives, financial situation or needs into account. Consider whether it is appropriate for you before acting on it.
Related
Independent Financial Adviser Sydney
Based at 14 Martin Place, advising across Australia by Zoom, Teams or phone.
What Advice Costs
A fixed fee from $6,600, paid once, with no ongoing fees.
About Andy
Director and sole adviser at Independent Wealth Advice.
FAQs
Straight answers on cost, process and independence.
Book A Consultation
If you do not need advice, you find out for $330, not $6,600.
- 45 minutes with the adviser himself, not a junior
- A fixed quote on the call, if advice is warranted
- The $330 is credited in full if you proceed
Why $330 and not free? A free first meeting is usually paid for later, through ongoing fees. I would rather you paid once for my time and owed me nothing.
Pay $330 now. A consultation, not an advice session. Reschedule up to 48 hours before.