A financial adviser helps you decide what to do with your money across superannuation, investments, tax structure, insurance and estate planning, then documents that advice in a Statement of Advice. In Australia they must hold or operate under an Australian Financial Services Licence, meet education standards set by law, and act in your best interests.
Most people have a vague sense that a financial adviser is someon who tells you where to invest. That is a small part of it, and often not the most valuable part. The work is closer to structural: looking at everything you have, everything you owe, everything you are obliged to, and working out whether the way it is currently arranged will get you where you want to go.
This page explains what that actually involves, what advisers cannot do, and how to tell a licensed adviser from someone using similar language.
So what does a financial adviser do that you could not do on your own? Mostly, the structural work that happens before any investment is chosen.
What does a financial adviser do day to day?
The simplest way to answer what does a financial adviser do is to look at the five areas advice covers in Australia. Most engagements touch several of them, because they interact. At Silverloom they sit under wealth and financial planning.
Cash flow and structure. How income arrives, which entity receives it, what it is taxed at, and what is left over. For an employee this is relatively simple. For a business owner, someone with a trust, or a couple with very different incomes, tax and investment structuring often matters more than any investment decision that follows it.
Superannuation. Contribution strategy, which fund, how the money inside it is invested, and how it will eventually be drawn. Super is the largest asset many Australians hold outside their home, and it is governed by rules that change regularly and have hard annual deadlines. One of the most common questions it raises is whether extra money is better in super or against the mortgage.
Investments. What you hold outside super, how it is owned, how concentrated it is, and whether it matches how long you can leave it alone. Investment strategy gets most of the attention, but ownership and concentration usually get less than they deserve.
Insurance. Life, total and permanent disability, income protection and trauma cover. Insurance and risk protection is about what you hold, where it is held, whether the definitions would actually pay out in your situation, and whether you are paying for cover you no longer need. Where it is held matters more than most people expect, because holding cover inside super rather than outside it changes both the definitions and the tax.
Estate planning. Who receives what, through which mechanism, and what tax applies when they do. Estate and wealth protection is where advisers work alongside a solicitor rather than replacing one, and what estate planning actually covers goes through the documents involved.
The output is not a stock tip. It is a documented position on what to change, in what order, and why.
What does a financial adviser do that they are not allowed to do?
The restrictions are as useful to understand as the services, and they are part of the answer to what does a financial adviser do in practice.
They cannot guarantee returns or outcomes. No licensed adviser in Australia can promise investment performance. Anyone who does is either unlicensed or breaching their obligations.
They must act in your best interests. The best interests duty sits in the Corporations Act. In practice it means the advice has to be built around your circumstances and objectives, not around what is easiest or most profitable to recommend.
They must disclose what they are paid, and by whom. Fees, and any benefit received from a third party, have to be set out in writing before you commit.
They cannot advise outside the scope you agree. Advice can be comprehensive or scoped to one issue, but the scope is agreed with you and documented. An adviser who has only been engaged to review your insurance should not be making recommendations about your investment portfolio.
They cannot give personal advice without understanding your situation. This is why a first conversation is a conversation and not a recommendation — there is not yet enough information for a recommendation to be lawful.
How is a financial adviser different from an accountant?
The clearest way to put it: an accountant primarily looks backwards, a financial adviser primarily looks forwards.
An accountant deals with what has already happened — preparing and lodging returns, meeting compliance obligations, reporting on the year that has been. A financial adviser deals with what has not happened yet — what to do with income before it is earned, how to structure ownership before an asset is bought, what cover to hold before it is needed.
They overlap on structure and on tax. A good relationship between the two is not unusual and is usually productive: the accountant knows what the entities are doing, the adviser knows what the family is trying to achieve, and structural decisions sit between the two.
One practical difference matters. Financial advisers are generally not registered tax agents, so while advice frequently has tax consequences that must be considered, the tax position itself should be confirmed with a registered tax agent.
What qualifications does a financial adviser need in Australia?
The bar has moved significantly. To provide personal financial advice to retail clients in Australia, an adviser must:
- hold an approved bachelor’s degree or equivalent qualification;
- have passed the financial adviser exam;
- have completed a supervised professional year;
- complete continuing professional development every year; and
- be authorised under an Australian Financial Services Licence and listed on ASIC’s Financial Advisers Register.
That register is public and worth using. Search an adviser’s name at moneysmart.gov.au and it will show you their licensee, what they are authorised to advise on, their qualifications, and any bans or disciplinary action. It takes a minute and it is the single most useful check available to a consumer. You can see who we are and what Silverloom is authorised to advise on before you get in touch.
What is the difference between an adviser and a planner?
Nothing meaningful. In Australia both “financial adviser” and “financial planner” are restricted terms. Anyone using either title must be authorised under an AFSL and appear on the Financial Advisers Register. The words are used interchangeably across the industry.
Be more careful with titles that are not restricted. “Wealth coach”, “money mentor” and similar phrasing carry no licensing requirement, which means no best interests duty, no Statement of Advice, and no access to the free external complaints scheme.
Do you need a financial adviser?
What does a financial adviser do for someone in your position? There is no universal answer, and anyone giving you one without knowing your situation is guessing. What can be said is that people tend to seek advice around specific events rather than at a particular income or age.
The common triggers are: a significant change in income, selling or restructuring a business, approaching retirement, receiving an inheritance, a separation or a remarriage, starting a family, buying a first investment property, carrying debt you are not sure is structured well, or realising that superannuation has been sitting untouched in a default fund for fifteen years.
What these have in common is a decision with consequences that are hard to reverse. That is generally where paid advice earns its cost — not in choosing between two similar investments, but in getting a structural decision right the first time.
What does a financial adviser do in a first meeting?
At Silverloom the process starts with a short phone call of 20 to 30 minutes. It is free, carries no obligation, and exists to establish what you are looking for and roughly where things stand. If it makes sense to go further, the next step is a one-hour consultation held over Microsoft Teams, where your situation is worked through properly. Whether that consultation attracts a fee is discussed and agreed with you before it is booked. You can read more about how initial advice works, or about the flexible advice solutions available after it.
From there, if you choose to proceed: discovery, gathering the detail on income, assets, debts, super, insurance and objectives; then the advice itself, presented and explained and documented in a Statement of Advice setting out what is recommended, why, what it costs and any conflicts; then implementation and review.
The gap between the first conversation and a documented recommendation is usually a few weeks. It is not instant, and an adviser who offers a recommendation in the first meeting is not following the process the law requires.
Frequently asked questions
What does a financial adviser do that an accountant does not do?
An adviser plans forward — structure, super, investments, insurance and estate planning — and documents it in a Statement of Advice. An accountant reports on what has already happened and lodges returns. The two overlap on structure and tax.
Is a financial adviser the same as a financial planner?
In Australia the terms are used interchangeably and both are restricted by law. Anyone using either title must be authorised under an AFSL and appear on ASIC’s Financial Advisers Register.
How do I check if a financial adviser is licensed?
Search their name on ASIC’s Financial Advisers Register at moneysmart.gov.au. It shows their licensee, their authorisations, their qualifications, and any bans or disciplinary action recorded against them.
What is a Statement of Advice?
A written document setting out the advice given, the reasoning behind it, the fees payable and any conflicts of interest. Advisers must provide one when giving personal advice to a retail client.
Can a financial adviser manage my money for me?
Some advisers offer ongoing portfolio management, others provide advice you implement yourself. It depends on the authorisations they hold and what you agree in the service arrangement.
What can I do if I am unhappy with advice I received?
Complain to the licensee first. If it is not resolved, the Australian Financial Complaints Authority provides free, independent external dispute resolution for financial advice complaints.
Silverloom Advisory Group provides licensed financial advice to clients across Australia, delivered online. If you are still weighing up what does a financial adviser do for someone in your position, that is exactly what the first conversation is for. It starts with a free 20 to 30 minute phone call, with no obligation to go further. Book a time that suits you, or get in touch if you would rather ask a question first.
General advice warning. This article contains general information only. It does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for you and obtain personal advice before acting. Silverloom Advisory Group Pty Ltd is a Corporate Authorised Representative (CAR 1310731) of Core Advice Collective Pty Ltd, AFSL 700341.