Yes, you can switch financial advisers in Australia at any time, but doing so involves more than simply choosing someone new.
There is no rule requiring you to stay with a particular financial adviser or financial planner. However, the process involves more than simply appointing someone new. Your agreements, fee arrangements, and investment structures all need to be reviewed carefully.
When handled properly, a transition can be orderly and minimise disruption. Outcomes, however, depend on your individual circumstances, the structure of your accounts, and whether strategy changes are involved.
Why People Decide to Change Advisers
Australians switch advisers for many reasons.
Sometimes it’s about service. Calls aren’t returned. Reviews feel rushed. Communication becomes unclear.
Other times, the issue is strategic. A client nearing retirement may want a specialist retirement planner. A growing business owner might need more complex tax or wealth management advice. Relocation can also play a role.
Sometimes the change is not the client’s decision at all. An adviser may retire, leave the profession, or sell their business, prompting clients to reassess whether they want to continue with the new adviser or look elsewhere.
Performance concerns are common as well. It’s reasonable to question results if your portfolio consistently underperforms its agreed benchmarks. At the same time, short-term market declines do not always indicate poor advice. The key question is whether the strategy remains aligned with your risk tolerance and long-term goals.
In some cases, concerns can be resolved with a direct conversation. In others, a change is appropriate.
Are You Locked In?
In most cases, no.
Ongoing advice fee arrangements in Australia require annual written consent before fees can continue to be deducted. This requirement was introduced following the Royal Commission reforms and applies under the Corporations Act.
Importantly, the fee consent mechanism is annual. The broader service agreement itself may not be limited to 12 months, so it’s worth reviewing the actual contract terms.
Exit fees for advice services are now uncommon. However, investment products may have costs attached to buying, selling, or switching. Managed funds can include buy-sell spreads. Wrap platforms may charge transaction or administration fees. These are product-level costs, not adviser exit fees, and they should be assessed separately.
If you’re unsure, request a written breakdown before making changes.
Step One: Review Your Current Documentation
Before engaging a new financial adviser, take time to understand what documents you already have in place:
- Your most recent Statement of Advice (SOA)
- Any ongoing service agreement
- Recent fee disclosure statements
- Superannuation or investment platform details
- Insurance policies arranged through the adviser
The SOA explains the rationale behind your strategy. A new adviser will review it to understand the basis of previous personal financial advice.
Advice documentation requirements are evolving under the Quality of Advice Review reforms, and further changes are occurring following the 2024 DBFO legislation introducing the “good advice duty.” While the best interests duty continues to apply to personal advice for retail clients, the broader advice framework is in transition. For now, significant strategy changes generally still require formal written documentation.
If you cannot locate key documents, you are entitled to request copies.
Step Two: Select a New Adviser Carefully
Switching advisers is not just about leaving — it is about ensuring the next relationship is better suited to your needs.
Begin by checking the ASIC Financial Adviser Register. The register confirms qualifications, licence status, and whether any enforcement action or banning orders have been recorded. This is a simple but powerful due-diligence step.
You should also confirm whether the adviser holds their own Australian Financial Services Licence (AFSL) or operates as an authorised representative under a licensee. This distinction matters because your formal agreement is ultimately with the licensee.
Ask clear questions about fees. Is the arrangement fee-for-service? Is it asset-based? Is there a fixed project fee for initial advice? Transparent pricing is a strong indicator of professionalism.
At the start of any new engagement, the adviser must provide a Financial Services Guide (FSG). This document explains who they are, how they are licensed, the services they offer, how they are remunerated, and how complaints are handled.
Step Three: Provide Written Authority
Your new adviser cannot simply “take over” your accounts.
You will usually be asked to sign a letter of authority — a signed document authorising your new adviser to access your financial information and request details from your current provider.
This allows them to review:
- Investment holdings
- Superannuation balances
- Insurance policies
- Existing fee arrangements
Without this authority, providers cannot release information due to privacy laws.
You should also formally notify your outgoing adviser in writing that you are ending the ongoing fee arrangement.
What Happens to Your Investments and Super?
In many cases, the practical change is minimal. The adviser code on your account is updated, but your super fund, managed accounts or investment platform remain in place.
However, a new adviser may recommend strategic adjustments. That could mean rebalancing your asset allocation, replacing underperforming managed funds, consolidating super accounts, or moving to a different platform if costs or features are better aligned with your goals.
If new personal advice is provided to a retail client, it must be documented appropriately. Depending on the circumstances, this may involve a Statement of Advice or a Record of Advice.
Where assets are sold, capital gains tax may apply. For SMSFs or defined benefit interests, changes should be approached with particular care due to potential structural consequences.
Fees When Switching
Costs do not arise from “switching advisers” itself. They arise from specific actions taken during the transition.
You may have a final period of ongoing advice fees payable under your existing agreement until written consent is withdrawn. Separately, your investment platform or managed funds may apply transaction costs if assets are sold or replaced. Finally, your incoming adviser will charge for the preparation of new advice, whether as a fixed project fee or another disclosed structure.
These three cost areas are distinct. Requesting written clarification from both advisers before proceeding can prevent surprises.
Your Legal Protections
Australian law provides clear protections when receiving personal advice.
Licensed advisers must act in the best interests of retail clients when providing personal advice under the Corporations Act. In addition, following the 2024 DBFO reforms, a statutory good advice duty now applies to certain advice settings, further reinforcing conduct standards.
You can verify credentials through the ASIC Financial Adviser Register, withdraw ongoing fee consent at any time, and expect transparent disclosure of fees and conflicts.
If concerns arise, you can first raise them directly with the firm. If the issue is not resolved, the Australian Financial Complaints Authority (AFCA) provides external dispute resolution.
Many adviser transitions are straightforward and cooperative. However, if a situation becomes complex or disputed, formal complaint pathways are available.
When It May Be Worth Pausing Before Switching
If performance is your main concern, consider the broader context first:
- Was your agreed strategy growth-oriented, balanced, or defensive?
- Have broader markets declined?
- Has your time horizon shortened?
- Are the fees clearly disclosed and understood?
Performance concerns can be valid. But a strategy should be assessed against its stated objective and risk profile, not only short-term market movements.
If you’re unsure whether to switch, reading about common mistakes Australians make when choosing a financial adviser can provide perspective.
Summary
You can switch financial advisers in Australia at any time.
The key steps are:
- Review your existing agreement and fee arrangement
- Select a licensed adviser and check ASIC registration
- Sign a letter of authority
- Formally end your ongoing fee consent
- Assess any product-level transaction costs
For many Australians, switching advisers simply reflects changing needs. As careers evolve, families grow, or retirement approaches, the right advice relationship may change too.
FAQs
Is it difficult to change financial advisers?
Usually not. The process involves paperwork and account access transfers, but most transitions are straightforward.
Will I need to move my super fund?
Not necessarily. You can change advisers without changing your super fund, unless strategy adjustments require it.
Can my adviser charge an exit fee?
Advice exit fees are uncommon. However, product-level transaction costs may apply depending on your investments.
Do I need a new Statement of Advice?
If your new adviser provides updated personal advice, documentation is required. This may be an SOA or a Record of Advice (which one applies will depend on your situation and regulatory settings).
Can I switch advisers for just one account?
Yes. You can appoint a new adviser for a specific investment or super account without moving everything.
