What is a financial planner?
A financial planner is a professional in Australia who provides structured financial advice to help individuals or families manage their money, plan for retirement, invest appropriately, and make long-term financial decisions. Financial planners who provide personal financial product advice must be authorised under an Australian Financial Services Licence (AFSL) and regulated by the Australian Securities and Investments Commission (ASIC).
The term financial planner is commonly used by the public and industry, while financial adviser is the formal regulatory term used in legislation and on the ASIC Financial Advisers Register. In practice, both usually refer to the same licensed profession.
What a financial planner typically does
Consumers most often encounter the term financial planner when researching retirement advice, comparing advisers, reviewing advice documents, or looking for help coordinating multiple financial decisions.
A financial planner helps bring structure and strategy to financial decisions that involve long timeframes, regulation, or risk. Rather than focusing only on investments, most planners look at how different financial areas work together.
Depending on their authorisations and specialisation, this may include:
- Retirement planning and superannuation strategy
- Investment planning and portfolio structure
- Cash-flow and debt management
- Personal insurance (such as life or income protection)
- Tax-aware financial structuring (in collaboration with accountants)
- Estate planning considerations
- Centrelink and retirement income planning
Many planners provide comprehensive financial planning covering multiple areas, while others focus on specific advice needs such as retirement or investment strategy.
Financial planner vs financial adviser
In Australia, there is generally no legal distinction between a financial planner and a financial adviser.
Key practical differences are mostly about language rather than regulation:
- Financial adviser is the formal regulatory title used under the Corporations Act
- Financial planner is a commonly used industry and consumer term
- Both must meet the same licensing, education, and professional standards if providing personal advice
- Neither title indicates a different licence or authority
What matters more than the title is:
- What the professional is licensed to advise on
- Their qualifications and experience
- Whether they provide comprehensive or limited advice
- How they charge for services
- Whether they provide ongoing advice
While the terms are usually interchangeable, financial planner is often used when referring to holistic, long-term strategy advice rather than single-issue recommendations.
For a deeper comparison, see Financial Adviser vs Financial Planner: What’s the Difference?
How financial planners are regulated in Australia
Financial planners providing personal financial product advice must operate within a regulated framework designed to protect consumers.
This generally means they must:
- Be authorised under an AFSL
- Be listed on the ASIC Financial Advisers Register
- Meet minimum education standards
- Complete ongoing professional development
- Comply with conduct obligations such as the Best Interests Duty when providing personal advice to retail clients
These standards were strengthened following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and continue to evolve through reforms such as the Delivering Better Financial Outcomes (DBFO) program.
Consumers typically interact with this regulatory system through required advice documents such as Financial Services Guides and Statements of Advice, which explain the basis of recommendations and associated risks.
You can confirm whether a financial planner is licensed, their qualifications, and their employment history by searching the ASIC Financial Advisers Register.
When people typically engage a financial planner
People often engage a financial planner when financial decisions begin interacting with long-term planning, tax rules, or retirement considerations rather than everyday budgeting.
This commonly occurs when approaching retirement, building meaningful superannuation balances, managing debt alongside investments, receiving an inheritance, or transitioning from wealth accumulation to retirement income planning.
In many cases, the trigger is not wealth itself but the need to bring structure and coordination to multiple financial decisions at once.
Common misunderstandings about financial planners
Financial planning is often associated with investment selection, but much of the work typically involves structuring superannuation, managing retirement income, coordinating tax considerations, and helping clients prioritise competing financial decisions.
It is also commonly assumed that financial planning is only relevant for wealthy households. In practice, many planners work with professionals and families seeking financial structure as their financial lives become more complex.
Independence is another area of confusion. While some financial planners operate independently, others are authorised representatives of licensees. Independence has a specific regulatory meaning and does not automatically apply to all planners.
Qualifications can also be misunderstood. Education and professional designations demonstrate technical competence, but the value of financial planning ultimately depends on how well strategies align with a person’s circumstances and how consistently they are maintained over time.
Professional designations you may see
While licensing is mandatory, some financial planners also hold voluntary professional designations.
One of the most recognised is the Certified Financial Planner (CFP®) designation, which indicates advanced study, experience requirements, and adherence to professional standards originally established by the Financial Planning Association of Australia (FPA) and now administered in Australia by the Financial Advice Association Australia (FAAA) following the merger of the FPA and AFA.
Professional credentials can indicate additional training, but they do not replace the need to check licensing and authorisations.
FAQs
Is a financial planner the same as a financial adviser?
Usually, yes. In Australia the terms are often interchangeable. Financial adviser is the legal term, while financial planner is a commonly used industry description.
Do financial planners have to be licensed?
Anyone providing personal financial product advice must be authorised under an AFSL and listed on the ASIC Financial Advisers Register.
How do financial planners get paid?
Financial planners may charge:
- Fixed fees for advice
- Ongoing service fees
- Hourly fees
- Asset-based fees (in some cases)
Commission payments have largely been removed for investment products following regulatory reforms, although commissions remain permitted for some insurance products under strict limits.
Do you need a certain income or asset level?
There is no legal minimum asset level, although some firms specialise in complex or higher-asset clients while others focus on people seeking financial structure earlier in their financial lives.
Related glossary terms
Financial Adviser
Independent Financial Adviser
Fee-for-Service Adviser
Certified Financial Planner (CFP®)
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Financial Advice in Australia: What It Is, How It Works, and Where to Start
How to Choose a Trusted Financial Adviser in Australia – 2025 Checklist
When Is the Right Time to See a Financial Adviser in Australia? By Life Stage
Virtual vs In-Person Financial Advisers: Pros and Cons
