By Werner Gerber, CFA® | Founder, ClearGauge Wealth

ClearGauge Wealth (Pty) Ltd is an Authorised Financial Services Provider (FSP No. 55826). | Reviewed 23 August 2026

Quick Answer

Choose a financial adviser by testing five things: authorisation, scope, competence, conflicts and working fit. Verify the firm and adviser through the FSCA, ask exactly what work is included, obtain all costs in writing and understand how recommendations are selected. A polished presentation is not enough. The adviser should be able to explain the process, trade-offs and documents you will receive.

The right adviser is not necessarily the person with the strongest market view. It is the person or firm whose authorised service, method and accountability fit the decisions you need to make. Compare more than one provider when the engagement is material, and do not transfer or cancel existing arrangements until the consequences are understood.

Visual Summary

Test	What to establish	Evidence to request
Authorisation	The firm and representative may provide the relevant financial service.	FSCA search result, FSP number and the representative’s details.
Scope	The work matches your actual decisions.	Written scope, exclusions, deliverables and review cycle.
Method	Recommendations follow a repeatable advice process.	Fact find, assumptions, alternatives and record of advice.
Costs and conflicts	You understand incentives and total cost.	Written fee schedule, product/platform costs and conflict disclosures.
Working fit	Communication and responsibility are clear.	Named contact, meeting rhythm, response expectations and termination terms.

Decision framework for education only. It is not a recommendation or a suitability assessment.

Decision Framework

Start with the decision, not the adviser title. “Financial adviser”, “wealth manager” and “planner” can describe very different engagements. Write down the decisions you need help with and the result you expect before comparing firms.

1. Define the Work Before Comparing Providers

Decide whether you need a once-off review, investment advice, retirement planning, implementation, ongoing coordination or a combination. Ask what is excluded. Tax and estate work may require other professionals even when an adviser coordinates the process.

The written scope should identify deliverables, responsibilities, the review period and what would trigger additional work or fees.

2. Verify the Firm and the Person

Use the FSCA FSP Search to confirm the firm’s licence and the services it is authorised to provide. The FSCA search also permits a person search. Ask the firm to identify the relevant representative and key individual where applicable.

Authorisation is a starting point, not proof that an engagement is suitable for you. Still check competence, scope, process and conflicts.

3. Test Relevant Competence

Ask about experience with decisions like yours. A person who mainly arranges risk products may not be the right lead for a complex investment, tax and estate-planning engagement. Qualifications can help, but the practical test is whether the adviser can explain the work, assumptions and limits clearly.

Ask who will actually perform each part of the work and how other professionals are selected or paid.

4. Examine the Advice Process

A sound process should gather relevant facts before making a recommendation. It should connect advice to your objectives, financial position, time horizon and risk. It should also explain material alternatives and the consequences of acting or not acting.

Ask what written record you will receive and how later changes will be documented. The process should be understandable without relying on sales language or market predictions.

5. Understand Costs and Conflicts

Ask for advice fees, product costs, platform or administration charges, investment-management fees, transaction costs and any other remuneration. Express percentage fees in rands using a realistic portfolio value.

Ask whether the adviser, firm or related party receives a financial benefit from a product supplier or implementation choice. A conflict does not automatically make advice poor, but it must be identified, disclosed and managed.

6. Test the Working Relationship

You should know who responds to questions, how often the plan is reviewed and what happens when circumstances change. Ask how complaints are handled and how either party can end the engagement.

Good communication is precise and calm. Pressure to sign immediately, reluctance to document promises or irritation when you ask about fees are reasons to pause.

Key Concepts

Authorisation Is Necessary but Not Sufficient

A valid FSP licence helps establish that the provider is authorised for specified services. It does not rank advisers or guarantee that a particular recommendation is suitable for a specific client.

Advice Is a Process, Not a Product

The quality of advice is reflected in how facts, objectives, alternatives, costs and risks are brought together. A product can be one outcome of that process, but it should not define the process from the start.

Independence Must Be Tested

Do not rely on the word “independent” alone. Test ownership, product access, remuneration, related-party roles and whether the adviser can recommend no change when that is the most sensible conclusion.

Worked Example

A couple approaching retirement is comparing two advisers. One offers investment implementation only and charges a percentage of assets. The other proposes a once-off retirement analysis followed by optional ongoing coordination. The first proposal is not automatically inferior and the second is not automatically better.

The couple first defines the decisions: retirement income, tax, estate liquidity and portfolio structure. They ask both providers for scope, exclusions, total costs, conflicts, deliverables and review terms. Once those answers are comparable, the service difference becomes clearer than the job titles.

Reality Check

Past investment performance does not prove the quality of an advice process.
A professional qualification does not remove the need to verify authorisation and scope.
The cheapest proposal may omit work you need; the most expensive may include work you do not need.
A familiar brand does not remove conflicts, and a small firm is not independent by default.
A major transfer, surrender or replacement can create tax, cost and benefit consequences.

Common Mistakes

Choosing on Personality Alone

Trust matters, but it should be supported by a clear mandate, evidence, written costs and a disciplined process.

Comparing Only the Adviser Fee

A low advice fee can sit alongside expensive products or platforms. Compare the full cost stack and the service received.

Moving Assets Before the Review Is Complete

Do not assume a new relationship requires an immediate transfer. Understand tax, penalties, guarantees, waiting periods and loss of benefits first.

What This Framework Does Not Decide

This framework does not select an adviser, judge a specific firm or guarantee investment results. It does not replace a suitability assessment, legal advice or tax advice. It provides a structured way to compare services and identify questions that require evidence.

Frequently Asked Questions

Should I interview more than one financial adviser?

For a material or long-term engagement, comparing two or three written proposals can clarify differences in scope, costs and method. Avoid turning the exercise into a price auction without comparing the work.

How do I verify a financial adviser in South Africa?

Confirm the provider through the FSCA FSP Search and ask the firm to identify the authorised representative who will advise you. Check that the licence categories are relevant to the service offered.

Do I need an ongoing adviser?

Not always. Some decisions can be addressed through a once-off review. Ongoing advice may be useful when decisions, implementation and coordination require continuing attention. The service should justify the recurring cost.

What if I do not understand the recommendation?

Pause. Ask for the recommendation, alternatives, costs, risks and consequences in plain language and in writing. A decision should not depend on accepting a conclusion you cannot explain.

Financial Clarity Review

If you are uncertain about the advice you need, a Financial Clarity Review can help define the decisions, organise the facts and identify the scope before you appoint an adviser or alter existing arrangements.

Continue Exploring

Explore the ClearGauge Wealth library: Choosing a Financial Adviser

Sources and Further Reading

Primary regulatory sources were checked on 23 August 2026. Recheck current law, licence status, costs and product terms before acting.

Important Disclosure

This article is provided for general educational and informational purposes only and does not constitute financial, investment, tax or legal advice. The examples and illustrations are based on assumptions that may not apply to your circumstances and are not guarantees of future outcomes. Before making a financial decision, consider obtaining advice appropriate to your objectives, financial situation and needs.

When this question applies to your own arrangements

See the whole picture before deciding what to change.

A Financial Clarity Review provides an independent view of the arrangements you already have. We first confirm fit, scope and the once-off fee before any work begins.

Request a Financial Clarity Review

How Do I Choose a Financial Adviser in South Africa?