Frequently Asked Questions
Financial Planning FAQs
- Q. What is financial planning?
- Q. Are financial planners regulated?
- Q. Do financial planners have to be licensed?
- Q. What do the letters CFP mean?
- Q. Why should I choose a financial planner over another type of financial adviser?
- Q. How do I find a qualified financial planner?
- Q. How are financial planners paid?
- Q. What disclosure documents should I receive from my financial planner?
- Q. When should I start financial planning?
Q. What is financial planning?
A. Financial planning is the process of helping you meet your life goals through the proper management of your financial affairs.
Q. Are financial planners regulated?A. The Australian Securities and Investment Commission (ASIC) is the body responsible for regulating and administering legislation regarding the financial services industry.
Q. Do financial planners have to be licensed?A. Yes. By law a financial adviser must have a license or must be an authorised representative of an business that holds an Australian financial services (AFS) license in order to provide financial advice. Our article on Choosing a Financial Planner provides details of what you should look for when choosing a financial planner and information for checking credentials.
Q. What do the letters CFP mean?A. CFP stands for Certified Financial Planner. CFP certification is the globally recognised mark of professionalism for financial planners. CFP members are bound by a code of ethics and rile of professional conduct higher than those required by law, and commit to achieve required levels of continuing professional development.
Q. Why should I choose a financial planner over another type of financial adviser?A. Most financial planners have been trained to take a broad look at your financial situation. Other financial advisers such as accountants or stock brokers may only focus on a particular area.
Q. How do I find a qualified financial planner?A. Why not try Quotify Finance's FREE online referral service. We are independent of the financial services industry. Our network of providers have been pre-screened by us so you can be sure they meet the highest industry standards.
Q. How are financial planners paid?A. There are many different payment schemes for financial planning services which we detail in our article the cost of financial planning advice. Generally, some planners charge either a fixed fee or an hourly fee to develop a financial plan, some are paid by commissions on the products they sell, and some are paid by a combination of both. Information about fees and charges should be outlined in your financial planner's Financial Services Guide.
Q. What disclosure documents should I receive from my financial planner?A. There are three documents you should receive.
- Financial Services Guide (FSG) - This document will help you evaluate whether to obtain the services of the financial planning firm .
- Statement of Advice (SOA) - This outlines the advice you are receiving from the financial planner.
- Product Disclosure Statement (PDS) - This outlines the details of the financial products you are being recommended.
A. Financial planning is recommended at all ages. Whether your goal is early retirement, paying off your mortgage or wealth creation, financial planning can help you achieve financial and personal goals.
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