Are you confused about whether you need a financial adviser or financial planner? You’re not alone. In Australia, these terms are generally used interchangeably and for good reason. Legally speaking, they mean the same thing, and both professionals must meet the same rigorous regulatory standards to provide you with personal financial advice.
However, some people view these roles differently based on the scope of services offered.
Understanding these nuances can help you find the right professional for your unique situation and achieve the financial confidence you deserve. Let’s explore what you need to know to make an informed choice.
Not sure where to start? Our certified financial planners can help you navigate your options with complete transparency. Book your complimentary consultation today to discuss your financial future.
Understanding the Australian Financial Services Landscape
In Australia’s financial services industry, the terms “financial adviser” and “financial planner” are used interchangeably because they’re legally the same. Both must hold an Australian Financial Services (AFS) licence or work under one, and both are subject to identical regulatory requirements.
Since January 2019, strict professional standards have transformed the industry. Under section 923C of the Corporations Act, a person cannot call themselves a “financial adviser” or “financial planner” unless they are authorised to give personal advice to retail clients on relevant financial products. These reforms caused financial adviser numbers to drop from over 26,000 to fewer than 16,000 by January 2025, but significantly raised the quality bar for remaining professionals.
Protected Terms and Qualifications
To use the titles “financial adviser” and “financial planner”, professionals must:
- Hold or work under an Australian Financial Services (AFS) licence
- Be registered with ASIC before providing personal advice to retail clients
- Meet education standards including approved tertiary qualifications
- Complete the financial adviser exam
- Undertake ongoing professional development (40 hours annually)
- Comply with the Code of Ethics for financial advisers
Important: All financial advisers must be listed on ASIC’s Financial Advisers Register. You can verify any adviser’s credentials at moneysmart.gov.au. This public register allows you to check qualifications, authorisations, and professional history before engaging with any financial professional.
Unprotected Terms
Be extremely cautious of unregulated titles such as “wealth coach,” “money coach,” or “financial coach.” These titles are not protected by law and don’t require any specific qualifications or licensing. Money coaching is not regulated in Australia like financial advisers are, meaning these individuals:
- Cannot legally provide specific financial product advice
- Are not covered by professional indemnity insurance
- Are not subject to ASIC oversight
- May not have formal financial qualifications
- Cannot offer compensation if you lose money due to bad guidance
While some legitimate coaches focus solely on budgeting and financial behaviour without crossing into regulated advice, many operate in grey areas. If someone calling themselves a “wealth coach” or similar title provides specific investment recommendations or tells you which financial products to buy, they may be operating illegally.
What Do Financial Advisers and Financial Planners Do?
Financial advisers and planners are professionals who help individuals and organisations manage their money and plan for their financial future. They assess clients’ current financial situations including income, expenses, assets, and debts and work with them to set realistic short-term and long-term financial goals. Based on this assessment, they create comprehensive financial plans tailored to each client’s unique needs and circumstances.
Their core services typically include investment management, retirement planning, tax strategy, and estate planning. Financial advisers recommend investment strategies based on clients’ risk tolerance and goals, then build and monitor portfolios accordingly. They help clients determine how much to save for retirement, advise on tax-efficient strategies to maximise wealth and protecting assets from potential risks.
They typically are compensated through one of two primary models:
- Flat-fee advisers: Charge a fixed total fee for their services, agreed upfront
- Percentage-based advisers: Charge an ongoing fee based on funds under management, typically around 1% per annum
Both types of advisers may also receive commissions on insurance products they recommend. These commissions are paid by insurance providers and may create potential conflicts of interest, as advisers could be incentivised to recommend higher-premium policies or products that may not be in the client’s best interest.
Many financial advisers provide ongoing support by regularly reviewing and adjusting plans as life circumstances change, helping clients make informed decisions during major life events like marriage, career changes, or inheritance. The frequency and nature of this ongoing support typically depends on the fee arrangement with the adviser.
Where Some People See Difference between financial advisers and financial planners
Some industry observers note that the difference between financial advisers and financial planners are that some financial planners emphasise comprehensive, long-term planning that integrates all financial aspects, while some financial advisers may focus more on specific areas like investment management or insurance products.
However, in Australia, there is no legal difference between a financial adviser and a financial planner. Both terms are protected under section 923C of the Corporations Act and can only be used by individuals authorised to provide personal financial advice to retail clients on relevant financial products.
Any qualified professional using either title must:
- Meet identical education and qualification standards
- Pass the same financial adviser exam
- Be registered on the Financial Advisers Register
- Comply with the same Code of Ethics
- Maintain the same ongoing professional development requirements
- Adhere to identical best interests duty obligations
The perceived differences in scope or approach come down to individual business models and marketing preferences, not regulatory distinctions. Whether someone calls themselves a financial adviser or financial planner, they have the same legal authority and obligations.
How to Choose the Right Financial Professional
When evaluating financial professionals, look for these key indicators of a good fit:
Relevant Experience with Your Situation
Does the adviser regularly work with clients in circumstances similar to yours? Whether you’re a business owner, retiree, high-income professional, or building wealth in your 30s, you want someone who understands your unique challenges.
Clear Service Offering
The professional should clearly explain what services they provide, how often you’ll meet, and what deliverables you’ll receive. Be wary of vague promises or unclear scope.
Compatible Communication Style
You should feel comfortable asking questions and confident that explanations are clear and jargon-free. Financial decisions are easier when you understand the reasoning behind them.
Transparent Fee Structure
You should know exactly what you’ll pay, what that covers, and whether there are any additional costs (such as insurance commissions). No surprises.
Appropriate Qualifications
Verify credentials through ASIC’s Financial Advisers Register and look for additional certifications like the CFP® designation that demonstrate commitment to the profession.
Red Flags to Watch For
Protect your financial future by recognising warning signs:
Pressure Tactics: Reputable professionals give you time to consider recommendations
Hidden Fees: Demand complete transparency about all costs
One-Size-Fits-All Solutions: Your situation is unique and deserves tailored advice
Reluctance to Share Credentials: Legitimate professionals welcome verification of their qualifications
Guaranteed Returns: No ethical professional guarantees specific investment returns
Not Listed on the Register: If they’re not on ASIC’s Financial Advisers Register, they cannot legally provide personal financial advice
The Importance of Verification
The Financial Advisers Register exists specifically to help you verify credentials and protect yourself from unlicensed operators. The register contains:
- Adviser qualifications and training
- Products they’re authorised to advise on
- Professional history and employment details
- Disciplinary actions or bans
Making Your Decision
The difference between financial adviser and financial planner ultimately comes down to marketing preference, not legal distinction. Both terms refer to the same regulated professional role in Australia.
What truly matters is finding a qualified professional who:
- Is properly registered on the Financial Advisers Register
- Understands your unique situation and takes time to learn about your goals
- Communicates clearly and makes complex concepts understandable
- Uses transparent compensation that aligns with your best interests
- Demonstrates relevant expertise for your specific financial needs
- Shows genuine commitment to your long-term success
Whether they call themselves a financial adviser or financial planner is irrelevant—what counts is their qualifications, approach, and commitment to acting in your best interests.
Your Path to Financial Confidence
Understanding that these terms are interchangeable empowers you to focus on what really matters: finding a properly qualified, registered professional who can help you achieve your financial goals.
Don’t let terminology confusion prevent you from getting the financial guidance you need. Armed with this knowledge, you can confidently:
- Verify any professional’s credentials on the Financial Advisers Register
- Avoid unregulated operators using misleading titles
- Ask the right questions about qualifications and compensation
- Select a professional whose approach aligns with your needs
The right financial professional—whether they call themselves an adviser or planner—doesn’t just manage your money. They help you build confidence, security, and peace of mind about your financial future.
Take the First Step
Ready to work with a qualified financial professional? Whether you need comprehensive financial planning or specific investment advice, ensure you:
✓ Verify credentials on ASIC’s Financial Advisers Register
✓ Confirm appropriate qualifications and experience
✓ Understand their compensation structure
✓ Feel comfortable with their approach and communication style
At Precision Wealth Management, our financial planners specialise in creating integrated strategies that put your interests first. With transparent set fee structures, our only agenda is your financial success.
Contact us today for a complimentary consultation to discover how our holistic approach can help you achieve lasting financial confidence.
Frequently Asked Questions
There is no legal difference between financial adviser and financial planner in Australia. Both terms are protected under the Corporations Act and can only be used by qualified professionals authorised to provide personal financial advice to retail clients. While some people perceive planners as taking a more comprehensive approach and advisers as focusing on specific areas, both must meet identical qualifications, registration, and regulatory requirements.
Check ASIC’s Financial Advisers Register at moneysmart.gov.au/financial-advice/financial-advisers-register. This public register confirms whether someone is authorised to provide financial advice, shows their qualifications, and lists what products they can advise on. If someone isn’t listed but uses the titles “financial adviser” or “financial planner,” they’re operating illegally.
What does a financial planner do depends on their business model, but many take a comprehensive approach covering retirement planning, investment management, tax strategies, estate planning, insurance analysis, and cash flow management. However, financial advisers can legally provide these same services. Both must be qualified, registered professionals who meet identical regulatory standards.
No. Terms like “wealth coach,” “money coach,” or “financial coach” are unregulated and not protected by law. These individuals don’t require licensing, aren’t subject to ASIC oversight, and aren’t covered by professional indemnity insurance. If they provide specific financial product advice, they may be operating illegally. Always verify credentials through the Financial Advisers Register.
Fees vary based on service complexity and professional experience. At Precision Wealth Management, our annual fees start at $5,000 plus GST and increase from there depending on the complexity and risk of your situation, as well as the value we can provide to you. We operate on a transparent fee-for-service model, ensuring our advice is always in your best interests. We believe in complete transparency, and we’ll always provide you with a detailed fee schedule and explain exactly how we’re compensated before you proceed.
DISCLAIMER – The information provided in this blog is general and does not consider your individual financial needs or objectives. It does not constitute personal advice. We recommend seeking out professional and independent financial, legal and tax advice which has been designed for your individual situation before acting on any information contained below.
