If you are in the market for a financial adviser, but you are wary because of advisers like Melinda Scott, who stole millions from her clients, then you are in luck. The Australian Securities and Investments Commission has confirmed that a new national register for financial advisers will roll out as planned at the end of March, 2015. These are the main points you need to know.
How Can You Check Your Financial Adviser Is On The Register?
ASIC has advised that at this stage they have not yet finalized the regulations about the register, but when it goes live on March 31, you will be able to access it from the ASIC MoneySmart website.
The register will contain the details of all people in Australia that are allowed to personal finance advice. It will cover everyone who is employed by financial services licensees and will also cover every person who directly or indirectly gives advice. It will provide details of any national body that the adviser is part of, as well as information regarding their qualifications.
What Are Your Responsibilities As The Consumer?
One of the interesting facts about this new online register is that it will run on an honesty system. That means there will not be any government oversight of it, and it is up to the adviser to be honest when they are entering their details into the system. However, this fact could change before the register is finalized and comes into being in March.
It is up to you as the consumer to double check the details your financial adviser has provided, and if you have any doubt you must ask to see the certifications and licenses that they claim to have.
While the majority of financial advisers are incredibly honest when it comes to your money, you must still be diligent about what they are doing with your funds, and how much you are being told. Be particularly mindful if you feel that you are not receiving regular reports, or if your adviser is incredibly hard to get hold of, as these could be signs of negligence or fraud.
The introduction of this register in March should bring you peace of mind when you are looking for a new financial adviser. Remember, however, that you still need to do some due diligence of your own to confirm you are being told the truth. A financial adviser can make a difference to your financial future, so if you have put off using the services of one before, you will not need to fear doing so in the future.
For more information, contact an independent financial adviser melbourne.Share