Investment and financial advice

Investing can be a good way of building your personal wealth, but it is not without risk. Like any financial transaction, it is important to plan, research and understand your investments before you get started.

What you should know before using a financial adviser

Financial advisers must be licensed. Before using an adviser, you should:

• check their credentials on the Australian Securities and Investments Commission (ASIC) financial advisers register
• ask to see documentation to prove their status.

If an adviser is not licensed to provide the type of advice you want, do not use them.

For more information, refer to the ASIC website.

Tips to protect yourself and your investments

ASIC provides information on investing, risk, financial advice and scams. Its Money Smart website also has an Investor Toolkit to help you.

Protect yourself and your investments by following these provided by ASIC and MoneySmart:

• do not give your financial adviser power of attorney. Reputable advisers will not ask you to do this.
• never sign a blank document given to you by anyone.
• if you give your adviser authority to buy and sell investments on your behalf, put a time-limit on it rather than leaving things open-ended.
• keep receipts and other documents in one place so it’s easier to keep track of your investments.
• never write cheques or transfer money to your adviser if the money is to be used for investments. Make the payment to the product provider instead.
• always double-check the account or BPAY number and reference details for any electronic payments you make.
• if something does not add up, contact your adviser immediately. If the matter remains unresolved, make a formal complaint.

What you can do if you have an issue with your adviser

NSW Fair Trading does not deal with investment and financial advice issues. If you have a problem or query about investment or financial advice, take the following steps:

1. Contact your adviser if you're unhappy with the financial advice, service you received or fees you are being charged.
2. If you are unable to resolve the matter with your adviser, you can make a complaint through their internal dispute resolution process. Once you submit your complaint, the business has 14 days to send an acknowledgement letter to you, and 45 days to give you a final response.
3. If you are unhappy with the response, you can contact the Australian Financial Complaints Authority (AFCA).
4. You can also contact the adviser's industry association or professional body regarding your issue. Check ASIC's financial advisers register to see which associations or professional bodies the adviser belongs to.

Making a complaint

If you have a complaint about financial services and products, you can visit the Australian Financial Complaints Authority or call on 1800 931 678.