When choosing a financial planner, most people focus on the individual adviser – their experience, qualifications and whether they feel comfortable working with them – all of which are important. But it’s also worth understanding who owns the firm behind that adviser.
Financial advice firms in Australia can operate under a range of ownership and licensing structures. Two common ownership models are adviser-owned firms, where advisers or principals own and control the business, and institution-backed firms, which are owned by or connected to a larger financial organisation, such as a bank, insurer or financial services group.
Neither model alone determines the quality of the advice you receive. But ownership can influence how a firm operates, the resources available to its advisers, how advice is delivered and how client relationships are managed over the long term.
Institution-backed vs adviser-owned financial planning firms: what’s the difference?
An institution-backed financial planning firm operates within, or is connected to, a larger financial organisation, such as a bank, insurer or financial services group. Depending on the organisation, this may give advisers access to:
- centralised investment research
- established investment frameworks and model portfolios
- approved product lists
- technology, compliance and administrative resources
An adviser-owned firm is owned and controlled by the advisers or principals who run the business. This gives them greater control over:
- the firm’s advice and investment philosophy
- the clients it specialises in helping
- how its services are structured and delivered
- how the business develops over the long term
It’s worth noting that adviser-owned doesn’t automatically mean ‘independent’ under Australian law. That’s a specific legal term with its own requirements. What adviser ownership does mean is that there isn’t a parent institution influencing the direction of the business through its broader commercial priorities.
How ownership can influence the client experience
Greater control over how advice is delivered
An adviser-owned firm controls its own client proposition and service model. Where the people who own and run the business are also involved in providing advice, they can have greater control over how the business operates, including its advice and investment approach.
Without a parent financial institution owning the business, the firm may also have more flexibility to shape its offering around the clients it chooses to serve.
This autonomy also creates room for personalised service. An adviser-owned practice can build specialist services around particular client groups rather than taking a one-size-fits-all approach.
RFS Advice, for example, has developed specialist financial planning services for wealth creators, retirees, institutions and not-for-profits.
Continuity of advice
At an institution-backed firm, the adviser a client works with, and sometimes even the firm’s ownership or business model itself, can change due to internal restructures, acquisitions or shifts in corporate strategy.
An adviser-owned firm can offer greater continuity because the people who own and shape the business are also closely involved in delivering its advice.
This matters because financial planning isn’t a one-off event. Someone might first seek advice in their forties while building wealth, move into retirement planning in their fifties, then face investment, estate planning and aged care considerations later in life. What matters over that time isn’t just continuity with an individual adviser. It’s also continuity of the firm and the advice philosophy behind it, helping reduce potential disruption to your financial plan.
Long-term adviser relationships
Continuity also gives your adviser the opportunity to understand you beyond the numbers. Over time, a Gold Coast financial adviser can develop a deeper understanding of your financial position, family circumstances, goals, attitude to risk and how your priorities change.
That depth of context can be particularly valuable for families with complex financial affairs, high-net-worth clients and clients moving through different financial stages, whether they’re building wealth in Southport or planning to retire in Broadbeach.
That’s not to say clients can’t build strong, long-term relationships with financial planners at institution-backed firms. The difference with an adviser-owned firm is that the people building those client relationships may also have a direct stake in the business and its long-term outlook, giving them an added incentive to nurture their client relationships over time.
Personalised service
Personalised advice means more than tailoring an investment portfolio. It means designing financial planning around a client’s circumstances, goals and preferences, and adapting that approach as their needs change.
Adviser ownership doesn’t automatically guarantee a more personalised service. However, it can give a firm greater flexibility to decide who it specialises in helping and build its services around those clients.
RFS Advice, for example, has used this flexibility to build a dedicated all-female team for women seeking greater financial security, recognising that women can face specific financial priorities and challenges.
Questions to ask before choosing a Gold Coast financial adviser firm
Ownership is only one factor to consider when choosing a Gold Coast financial adviser firm. Before deciding who to work with, asking some key questions can help you understand how the business operates and what the relationship is likely to look like.
- Who owns the firm, and who holds the Australian financial services (AFS) licence it operates under?
- What types of clients does the firm specialise in helping?
- What products and investments can the adviser recommend, and how are those recommendations selected?
- What qualifications and experience do the advisers have?
- How often will we meet and review my financial plan?
- How are fees structured, and are there any commissions or incentives tied to particular products?
- Who will look after me if my usual adviser is unavailable or leaves the firm?
- What is the process to end the arrangement, including any notice periods or penalties involved?
Choosing a financial planning partner for the long term
Ownership structure isn’t the only thing to consider when choosing a financial adviser, but it’s worth understanding because you’re not just choosing an adviser, you’re choosing the business that stands behind them.
RFS Advice is an adviser-owned financial planning firm on the Gold Coast, built and run by the advisers who work with clients directly across wealth creation, retirement planning, and aged care, with specialist advice available for women and high-net-worth families.
At RFS Advice, we aim to be a long-term financial planning partner to our clients, providing advice that evolves as your circumstances and priorities change. If you’re looking for an ongoing relationship with a team that can support you through different stages of your financial journey, book a call with one of our advisers today.
Frequently asked questions
Adviser-owned financial planning means the firm is owned and controlled by the financial advisers or principals who run the business, rather than by a larger financial institution. This gives the firm’s owners greater control over its advice philosophy, client service model and long-term direction.
An institution-backed financial planning firm is connected to a larger financial organisation, such as a bank, insurer or financial services group. It may provide access to centralised research, technology and compliance support. However, advice is generally delivered within the parent organisation’s framework.
Yes. Regardless of ownership structure, financial advisers providing personal advice to retail clients must comply with the same legal and regulatory obligations, including acting in the client’s best interests and prioritising the client’s interests where a conflict arises.
Ownership and licensing arrangements can influence how a firm operates, its service model and, depending on its licence and product governance arrangements, the products and strategies its advisers can recommend. It doesn’t necessarily determine the quality of advice you’ll receive, but understanding who you’re working with – both the individual adviser and the business behind them – can help you understand what to expect from the relationship.
You can ask the adviser directly or check their financial services guide for information about the firm and its Australian financial services (AFS) licensee. You can also search the Financial Advisers Register on ASIC’s Moneysmart website to check who the adviser is licensed by and their authorisation details.
General advice warning:
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.
