In an age where banks, mutual fund houses and other financial service establishments brings out innovative and complex financial products, the lay man out in the street often is confused at how to choose the best instruments to park his savings and get the maximum returns at an optimal risk. This is where the financial advisor steps in to help make the picture clearer and to help maximize returns and minimize your risks.

The financial advisory business in Australia is a thriving business with majority of the aging population unsure on where to park their savings. Financial advisors in Australia are governed by certain state rules to prevent fraud and malpractices. Australian government rules require that all professional who call themselves as financial advisors possess minimum qualification as required by the Australian Securities and Investment Commission. The financial advisors in Australia are also required to go through a test called the Gold Standard Test of Independence. They also should not have any ownership links or affiliations with product manufacturers and should not receive any commissions or incentives from them.

Financial advisors in Australia caters not just to individual clients but also to corporate houses and others real estate agents, property agents etc. There are also a few large financial advisory firms in Australia like the Collins House Pty Limited, Financial Advisers Australia etc. that operate on a more corporate fashion and serve larger clients. Such financial advisory firms require the Australian Financial Services license from the Australian Securities and Financial Commission to operate in the country.

Financial Advisors in Australia advise and deal in a range of financial products including direct equities, managed funds, superannuation and insurance products. They help develop a strategy to reach your financial goals and offer you a broad range of investment choices to reach your financial targets. The financial advisor has the ability to assess the client's current situation and compare it to his/her financial plan and make recommendations as to which direction the client should move and therefore is considered more qualified than a financial advisor.

But seeking the assistance of financial advisors in Australia in a costly affair as most of them charge hefty commissions. Financial advisors in Australia collect upfront fees as well as charge a percentage on the returns the portfolio earns for a specified time period. This puts a heavy burden on the individuals who come to seek the help of these financial advisors. Taking note of the situation, federal government in 2011 decided to ban the payment of commissions related to the distribution and advice of retail investment products.

There are also apprehensions related to the qualifications of many of the financial advisors and consultant in Australia. While some are highly qualified and professional, many others in Australia who serve as financial advisors do not have the requisite academic background. It is estimated that there is almost double the number of financial advisors operating in Australia than the registered 85000 with the CPA. Hence choosing an appropriate financial advisor becomes all the more important.

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