If you have been searching for a financial planner in Brisbane, you have probably noticed the word “independent” on more than a few websites. The term has a specific, protected meaning under Australian law for financial advisers under section 923A of the Corporations Act. It appears on websites, in brochures, and across marketing materials throughout the industry.
Yet, different advisers seem to use it differently. Some firms that have called themselves independent in the past are owned by banks. Others have received payments from product providers, such as commissions or other benefits. A few are genuinely free from conflicts of interest or influence from any product issuer.
So, what does “independent” actually mean in Australian financial planning? And how do you tell the difference between an adviser who is truly working for you and one who is quietly working for someone else?
If you would rather speak with a genuinely independent financial planner in Brisbane directly, contact Precision Wealth Management for an obligation-free conversation.
The Legal Definition of Independent Financial Advice in Brisbane
Under section 923A of the Corporations Act 2001, there are strict rules governing which financial advisers can legally use the terms “independent,” “impartial,” or “unbiased.”
To use these terms lawfully, an adviser must not receive commissions, volume bonuses, or any form of payment that is linked to the products they recommend. They must also not have any ownership or financial relationship with a product issuer or fund manager that could influence their advice.
This is not just a marketing preference. ASIC can take action against advisers who misuse restricted terms under section 923A.
In practice, this means that the vast majority of financial advisers in Australia cannot legally describe themselves as independent. Many are honest, qualified, and capable professionals, but they operate under structures that prevent them from meeting the legal threshold.
What the Royal Commission Found
Many people searching for an independent financial planner in Brisbane are already sceptical of the industry. That instinct is well-founded.
The 2019 Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry documented in specific terms what years of industry concern had implied. Advisers were found to have recommended products because of institutional relationships rather than client suitability. Clients were charged fees for no service. In some cases, fees continued to be deducted after clients had passed away. Conflicted remuneration structures were shown to directly influence advice outcomes.
The findings did not suggest that all advice was bad. They demonstrated that structural conflicts, left unaddressed, reliably produce advice that serves the adviser or the institution more than the client. Understanding that distinction is exactly why the question of independence matters. How an adviser is paid, and who they answer to, will shape the recommendations you receive.
Self-Licensed vs. Institutionally Owned Firms
To understand independence, it helps to understand how financial advice licensing works in Australia.
Every financial adviser must operate under an Australian Financial Services Licence (AFSL). That licence can be held by the adviser’s firm directly, or the firm can operate under a licence held by a larger institution.
Many advice firms are owned by, or affiliated with, major banks, insurance companies, or large financial conglomerates. These are institutionally aligned firms. Advisers working within these structures may be skilled and well-intentioned, but they are subject to the policies and commercial priorities of the institution that holds their licence.
One practical consequence of this arrangement is the approved product list. Many institutional licensees provide their advisers with a pre-screened list of products they are permitted to recommend. That list may contain 30 managed funds, while there are 300 or more available in the broader market. An adviser working from an approved product list is only ever showing you a filtered view of your options, and that filter may reflect commercial arrangements rather than best-fit analysis.
A self-licensed firm, by contrast, holds its own AFSL and is not owned by a product manufacturer or institution. This structure removes a significant layer of potential conflict.
It is important to note that self-licensing is a positive signal, but it is not the whole picture. A self-licensed firm can still receive commissions or operate with its own conflicts. Holding your own AFSL does not automatically satisfy the legal definition of independence under section 923A. That is why asking the right questions, which we cover shortly, matters regardless of how a firm describes itself.
What an Independent Financial Planner in Brisbane Looks Like
A genuinely independent financial adviser in Brisbane, operating under the legal standard described above, recommends products and strategies based solely on what is most appropriate for each client’s specific situation. They draw from the full market, not a restricted list shaped by commercial agreements.
Consider two different approaches to the same scenario. A 52-year-old client wants to consolidate their superannuation and build a retirement income strategy.
- An institutionally aligned adviser working from an approved product list might consolidate the client’s super into one of a handful of approved funds, select an insurance product tied to the institution’s platform, and structure the advice around what fits within their licensee’s framework.
- An independent adviser working from the full market would assess every available option relevant to that client’s situation, including industry funds, retail funds, self-managed super, and a wide range of income strategies, with the sole objective of identifying the best fit for that specific client’s goals, timeline, and tax position.
The difference is not always visible in the final recommendation. It is visible in the process that produced it, and in whether the adviser had access to the full range of options or only the ones they were permitted to offer.
Genuinely independent advisers are also typically paid on a fee-for-service basis. You pay a transparent, agreed fee for the advice you receive.
The Visible Fee vs. the Hidden Cost
One of the most common concerns people raise when exploring fee-for-service advice is cost. Independent financial advice in Brisbane can appear more expensive at first glance, because the fee is stated clearly upfront.
What is less visible is the cost of commission-based or product-linked advice. When an adviser receives a commission from an insurer, that commission is ultimately funded by you through your premium. For advisers who work within a product-linked model, revenue can also come through ongoing platform fees or asset-based charges tied to how much you have invested. The cost is not absent. It is embedded rather than disclosed, and it persists for as long as you hold the product.
A visible fee for independent advice often compares favourably with the embedded, ongoing costs you may not realise you are already paying.
Verifying What a Financial Adviser Tells You
Knowing the right questions is valuable. Knowing how to verify the answers is even more important.
ASIC’s Financial Adviser Register available through the MoneySmart website, is a free public resource. It allows you to look up any licensed financial adviser in Australia. You can check their authorising licensee (which tells you who holds the licence they operate under), their qualifications, any conditions on their registration, and whether they have any compliance or disciplinary history.
Before meeting with any adviser, look them up on the register. It takes a few minutes and tells you more than most marketing materials will.
Before any licensed adviser can provide advice, they are also required by law to provide you with a Financial Services Guide (FSG). This document discloses how the adviser is paid, who holds their licence, and what services they offer. Read the FSG before asking any other questions. The licensing structure and remuneration disclosures in an FSG will tell you more than the word “independent” on a website.
Questions to Ask Any Financial Adviser
These questions are worth raising with any adviser you are considering. The answers are all either publicly available or legally required to be disclosed, so there is no reason to hold back.
- Are you legally permitted to describe yourself as independent under section 923A of the Corporations Act?
This is the most direct question. If the answer is yes, ask them to explain how they satisfy the requirements.
- Who holds your AFSL, and is that entity connected to any product provider, bank, or insurer?
This tells you whether the adviser operates under an institutional licence.
- How were products assessed for inclusion on your approved product list, and did any commercial relationships influence that process?
A list built around commercial relationships limits your options without you ever knowing it.
- How are you paid? Do you receive any commissions, trailing fees, or volume payments from product providers?
A straightforward fee-for-service model is the clearest sign of structural independence.
- Can you provide me with your Financial Services Guide before our first meeting?
Any licensed adviser must provide this. It discloses their licensing structure and payment arrangements.
Working with an Independent Financial Planner in Brisbane
At Precision Wealth Management, we hold our own AFSL, receive no commissions, and are not affiliated with any product provider or financial institution. Our recommendations are drawn from the full market, and our fees are transparent and agreed with you before any advice is provided.
Whether you are based in North Lakes, Birtinya, or anywhere across South East Queensland, the structure of the advice you receive matters as much as the strategy itself.
We would welcome the opportunity to show you what genuinely independent financial advice in Brisbane looks like in practice. Contact us to arrange a no-obligation conversation.
Frequently Asked Questions
Under section 923A of the Corporations Act 2001, a financial planner can only legally describe themselves as independent if they receive no commissions, no volume bonuses, and have no financial relationship with a product issuer that could influence their recommendations. Most advisers in Australia cannot meet this standard due to their licensing or payment structures. It is a legal threshold, not just a marketing description.
Look them up on ASIC’s Financial Adviser Register at moneysmart.gov.au. This free public resource shows you who holds the adviser’s licence, their qualifications, any conditions on their registration, and any compliance history. Also request their Financial Services Guide before your first meeting. The FSG discloses how they are paid and who their authorising licensee is.
Not necessarily. Fee-for-service advice involves a visible, agreed fee that is disclosed upfront. Commission-based advice embeds costs within product fees and platform charges, which continue for as long as you hold the product. When you compare the two over time, fee-for-service advice often compares favourably, and the transparency of knowing exactly what you are paying for has its own value.
Yes. Holding your own AFSL removes the institutional ownership conflict, but it does not automatically satisfy the legal definition of independence under section 923A. A self-licensed firm can still receive commissions or product-linked payments. Ask directly how the firm is paid and whether they operate from an approved product list, regardless of how they describe themselves.
A Financial Services Guide (FSG) is a document that any licensed financial adviser in Australia is required by law to provide before giving advice. It discloses how the adviser is paid, who holds their licence, and what services they are authorised to provide. Reading the FSG is the fastest way to understand the structure behind the advice you are about to receive. It is the first document to review before asking any further questions.
If you found this article helpful, consider sharing it with a friend or family member who is currently evaluating financial advisers. The more informed consumers are about how the industry works, the better the decisions they can make.
