To help Australian investors protect themselves from dishonest or unethical financial services providers, Australia Fund Registry publishes guidance and resources designed to empower you—the investor—with the tools needed to navigate the ever-evolving investment landscape with confidence and caution.
To assist in avoiding future issues with your financial adviser or broker, we've outlined a comprehensive checklist of prudent practices every informed investor should adopt:
- - Read, understand, and retain all investment documents provided by your broker or financial services firm, including monthly or quarterly statements, trade confirmations, and any other transaction records.
- - Act quickly if something doesn’t look right. If you notice a transaction or entry that seems suspicious, unfamiliar, or unauthorised, raise the issue immediately with your adviser. If the response is unsatisfactory, escalate your concern to the firm’s compliance manager or complaints department.
- - If you believe you've experienced misconduct or financial loss, lodge a written complaint with your broker’s head office and retain copies of all correspondence and supporting evidence. If the issue remains unresolved through internal channels, consider external dispute resolution options such as the Australian Financial Complaints Authority (AFCA).
- - Persistence matters. If you’re not getting answers or a fair resolution, don’t give up. You can file a formal complaint with Australia Fund Registry or another appropriate regulatory body, including ASIC (Australian Securities & Investments Commission), depending on the matter.
- Be cautious of big promises. Watch out for advisers or salespeople who guarantee high returns or promise to double your investment in a short period. These claims are usually misleading—especially if they come from someone you’ve never dealt with before.
- - Avoid high-pressure sales tactics. If a broker urges you to act fast on a “limited-time opportunity,” take a step back. Every investment decision should be based on careful consideration—not urgency.
- - Never send money to unfamiliar firms or individuals based on an unsolicited phone call or online pitch. Always verify the legitimacy of the business and check if the individual is registered.
- - Understand what you’re investing in. Whether it's shares, bonds, managed funds, or ETFs, make sure you grasp the risks, potential returns, and how the product fits your goals. Investment markets can fluctuate, and not all products are suitable for everyone.
- - Exercise extra caution with high-risk investments, such as small-cap stocks or unlisted companies. Do thorough research into the company’s background, financials, and market liquidity before committing your capital.
- - Approach investing with the same seriousness you would apply to buying a home or vehicle. Investigate the opportunity thoroughly—including the adviser and the firm making the recommendation. Don’t rely solely on verbal pitches—request a Product Disclosure Statement (PDS), annual reports, or research papers, and read them carefully. Consult with your broker, independent financial adviser, or accountant to assess the potential risks and rewards.
Our Broker Check Tool helps you verify whether a broker is currently registered and if they’ve been the subject of:
- - Formal complaints or unresolved disputes with clients;
- - Civil or regulatory actions related to misconduct or poor advice;
- - Complaints involving allegations of fraud, theft, or misappropriation;
- - Any penalties or sanctions imposed by Australia Fund Registry, ASIC, or other regulatory agencies.
- - At Australia Fund Registry, we believe that informed investors are empowered investors. Protect your future—educate yourself, ask questions, and always verify before you invest.
