Getting Financial Advice
6. Carrying out the advice
Cooling off
If you purchase managed funds, life insurance, super or general insurance, you generally get a 14 day 'cooling off' period when you can change your mind and get your money back. (There are some exceptions, including buying shares.)
Making payments
Make cheques or money orders payable only to the company named in the prospectus or product disclosure statement, adding the words 'on account of [your name]'. This helps the company credit your account. Never make a cheque for an investment payable to your adviser. (Reputable advisers won't ask you to do this.)
Keep control and keep your paperwork
Keep control over your money and investments. If you are sick or going away, it's best to authorise an independent person, a solicitor or trustee to act for you and check what your adviser is doing. If you have particular reasons to give your adviser power to buy and sell investments on your behalf, avoid long term, open-ended arrangements.
Always get receipts. Keep all your paperwork about your advice and investments yourself so you can keep track of your money and check your regular statements for possible mistakes. If you do not get a receipt or statement from the company in which you invested your money within four to five weeks, contact them without delay.
Check how often you will get statements and reports about your investments. Usually you will receive information at least twice a year. If it's late, contact the company direct, not your adviser.
Protect yourself from fraud
Fraud happens, although not very often. Act immediately if something does not add up or look right. Contact your adviser and if the matter is not sorted out quickly, make a formal complaint. If you suspect fraud or dishonesty, contact ASIC as well.
People sometimes open themselves up to fraud through illegal or secret investments that they're trying to hide from the Tax Office for example. Contact ASIC if you are ever offered these 'investments'.
Review your plans
Review your plan at least once a year to ensure the plan is still right for you. Keep an eye on your investments. Your circumstances may change and the market value of your investments will certainly change. If you have a long-term plan, don't panic about small changes in the market. On the other hand, you should talk to your adviser if major changes occur.
Many advisers can review your plan and investments for you. Check how much it costs in dollars and what you get for your money. Dealing with complaintsBy law, all advisory businesses must tell you how they handle complaints. They must have a proper internal complaints process, and must also be a member of an independent scheme to which you can complain if you remain dissatisfied.