How to Choose a Financial Advice Licensee: 2026 Checklist for Advisers

By Anthony Zaman, Director and Responsible Manager, Core Advice Collective. Reviewed by Anthony Zaman. Last reviewed 29 October 2026.

Here is how to choose a financial advice licensee: confirm on ASIC’s registers that its licence is current and its authorisations cover your advice, then test how it meets its obligations: supervision and advice review, training, PI insurance, AFCA membership and resourcing. Finally, agree in writing how authorisation, registration, costs and an exit will work.

Knowing how to choose a financial advice licensee matters because the licensee is legally responsible for the advice you give and sets the processes you work within every day. This guide is written from a licensee’s side of the table. It sets out what to check, what to ask and the common mistakes, with every regulatory fact dated and linked to the ASIC page it comes from.

How to choose a financial advice licensee: start with the licence

Search the licensee on ASIC’s professional registers first. The search is free and covers AFS licensees and authorised representatives. ASIC says it shows the licence number, address, start date, licence status and “any conditions on the registration or licence”, and that the register is updated once a day (ASIC, Professional registers search, 10 July 2026).

Then compare the licence with your advice. If you advise on SMSFs, insurance inside super, direct shares or managed accounts, confirm that the licence covers those products and services before you go further. Ask for a copy of the licence authorisations if the register summary is not detailed enough.

It is also worth checking the advisers already authorised by the licensee on the Financial Advisers Register, and its authorised representatives on ASIC’s authorised representative register. Our guide to the corporate authorised representative structure explains what each register shows.

What must a licensee provide to its advisers?

An AFS licensee has “a general obligation to provide efficient, honest and fair financial services” (ASIC, AFS licensee obligations, 20 April 2026). ASIC’s summary of the general obligations, with guidance in RG 104, includes the items below. Each one is something you can ask a prospective licensee to show you.

Licensee obligation (ASIC summary)	What to ask or look for
Training and competence of advisers and authorised representatives (RG 146)	How training, CPD and competence are monitored, and who your day-to-day contact is
Compliance with financial services laws	How advice is reviewed before and after delivery, and how findings are fed back
Compliance, conflicts and risk management (RG 181)	The approved product list process, conflicts register and how product or platform ownership is managed
Adequate financial, technological and human resources	The size of the compliance and review team relative to the advisers it supervises, and the systems you will use
Competence of responsible managers (RG 105)	Who the responsible managers are and their experience in personal advice
Dispute resolution and compensation arrangements for retail clients (RG 271, RG 126)	The internal dispute resolution process, AFCA membership and PI insurance cover
Reporting to ASIC	How reportable situations are identified and lodged; ASIC says most must be reported within 30 calendar days

Table based on ASIC, AFS licensee obligations (20 April 2026) and ASIC, Reportable situations for AFS and credit licensees (3 September 2026). Checked 29 October 2026.

Does the licensee have adequate PI insurance?

Licensees that provide financial services to retail clients must have adequate compensation arrangements, which ASIC administers under s912B and RG 126. For a licensee with retail financial services revenue of $2 million or less, ASIC’s benchmark is PI cover of at least $2 million for any one claim and in the aggregate. Above that, the minimum should be roughly equal to retail revenue, up to $20 million (ASIC, RG 126, updated 2 December 2025). ASIC’s September 2026 financial advice update reported that ten licensees had stated less than $2 million of PI cover in their FS70 returns. Ask for the certificate of currency and the main exclusions.

Is the licensee an AFCA member?

Firms that must have a dispute resolution system need both internal dispute resolution procedures and membership of the Australian Financial Complaints Authority (ASIC, Dispute resolution, 20 December 2024). ASIC states that a licensee that is not an AFCA member when required is in breach of its licence obligations (ASIC, AFS licensee obligations, 20 April 2026). In October 2026 ASIC cancelled an AFS licence for failures that included not cooperating with AFCA, financial reporting and paying statutory levies (ASIC media release 26-251MR, 21 October 2026). A licensee’s own compliance record is part of what you are choosing.

How will the licensee supervise and support your advice?

This is where licensees differ most. The licensee is responsible for the advice given under its licence, so the review process is both a protection for clients and the main support you receive. Ask to see it working, not just described.

• Is advice reviewed before it is delivered to the client, after, or both?
• How long do file reviews usually take, and who carries them out?
• Is there peer review or technical support for complex strategies?
• Is Statement of Advice writing support available, and on what terms?
• What software, research and templates are provided, and which must you pay for?

Ask too how the licensee manages lead generation and other third-party arrangements. In February 2026 ASIC began a review of advice licensees that use lead generation services and said advisers and licensees “should carefully consider whether they are able to comply with their legal obligations” when engaging with lead generation businesses (ASIC media release 26-029MR, 18 February 2026).

What does moving to a new licensee involve?

Moving involves a reference check, a new written authorisation, ASIC notices and registration, in that order. The new licensee must take reasonable steps to obtain a reference from your current and former licensees before it employs or authorises you. The ASIC protocol has been mandatory since its transitional period ended on 1 March 2025, and referees include former licensees from the past five years (ASIC, Financial advice update September 2026, 9 September 2026).

You must also be registered by the new licensee before giving personal advice to retail clients. ASIC describes registration as an ongoing obligation, and lists registration ceasing when the registering licensee ceases the authorisation as a common cause of advisers becoming unregistered (ASIC, Financial advice update September 2026). The same update confirms the qualifications standard took effect on 1 January 2026, so confirm your record on the Financial Advisers Register is correct before you move.

Our step-by-step checklist for changing licensee covers the sequence in detail, including client communications and ongoing fee arrangements. If you are still deciding whether to be authorised at all, read AFSL vs authorised representative and how to become an authorised representative.

Questions to ask a licensee before you sign

Question	What a clear answer covers
Do your authorisations cover all the advice I give now and plan to give?	The specific products and services, and any conditions on the licence
How is my advice reviewed, by whom and how quickly?	Pre-vetting, post-delivery file reviews, peer review and usual turnaround
What does it cost, and how are ASIC and CSLR levies, PI and AFCA costs recovered?	A written schedule of fees and pass-through costs, and how they change
What will I be required to use?	Approved product list, platforms, software and research, and the process to add products
Who owns the client relationships and records?	Clear terms on client files and records during and after the arrangement
What happens if either of us ends the arrangement?	Notice periods, reference requests, ceasing authorisation and handover of records
Who lodges my appointment and registration with ASIC, and how will I know?	The person responsible and confirmation before you give any personal advice

Common mistakes when choosing a licensee

• Choosing on price alone. Fees are easy to compare; the quality of supervision and support is what affects your clients and your file risk.
• Not checking the register. Licence status and conditions take minutes to check on ASIC’s professional registers.
• Assuming the authorisations fit. Specialist advice such as SMSF or managed accounts needs a matching authorisation.
• Skipping the exit terms. Agree how records, references and ceasing authorisation will work before you start.
• Advising before registration. A new authorisation is not enough; registration by the new licensee must be in place before personal advice to retail clients.

Frequently asked questions