HMH Advisory

What are your qualifications?

Look for key providers such as the Financial Planning Association (FPA) or the Securities Institute of Australia (SlA). Principals should be "Certified Financial Planners" and members of the FPA.

Who is your typical client and what do you do for them?

Don't be afraid to ask about the "typical" clients of the planner and the nature of the work that is done for them. You need to be sure that the planner is used to handling assignments like yours.

What is your service offering?

Advisors should be able to describe clearly the services they offer. How many times will you meet face-to-face each year? How are portfolios managed and how often are they reviewed? Who will be managing your account on a day to day basis? What is different about the service offering compared to other advisors?

What is your experience?

The ability to apply financial planning knowledge is critical. While financial planning is a highly technical discipline, there are significant subjective elements to it - it is as much an art as a science. Skills and judgement gained through years of practical experience are essential to achieving the right outcome. Ask about years of experience and career history. Also enquire about ongoing training and keeping up to date.

Do you have single platform approach?

The advisor should be able to offer more than one platform. If there is only a "wrap" or "master trust" platform offered, the advantages and disadvantages of this approach must be clearly explained to you.

How will you get paid for your services, both initially and on an ongoing basis?

This is a very important question as it clarifies the issue of whether the advisor will be taking fees or wi­ll be paid a commission. You must understand that advice is not free - it comes at a cost, just like everything else. You should clearly identify what that cost is. This information will be in the financial services guide given to you by the advisor at the first meeting.

What is your succession plan? When do you plan to retire and who will take over my account when you finally do?

This may be important depending on the age of the planner you talk to. You should look for a business answer that shows the firm has the resources in place to cover any eventuality, and has several authorised financial planners who you know and who are familiar with your file.

Where do you think you can add the most value?

This will determine the approach the advisor intends to take, be it by applying a strategic frame-work, by achieving high investment returns, by tax effectiveness, by ongoing management or by being a sounding board and a coach. This question is really asking the advisor about their core value proposition? If this cannot be satisfactorily answered - keep on looking for an advisor!

Are you tied to the company products you are recommending?

This will help identify any potential conflicts of interest, as some large institutional advisors are restricted in what they can recommend to a client. You should be aware of any alliances.

Do you specialise and are there any restrictions on where you can advise me?

To choose the right planner, you need to be confident that they can attend to all of your needs both initially and on a continuing basis. Licence restrictions apply to limit the advise some planners can give.