Australia's financial watchdog has launched the MoneySmart toolkit to help mitigate complexities that often arise when looking for financial advice.

The Australian Securities and Investments Commission has launched a “digital toolkit” that seeks to help residents navigate the financial advice process more efficiently.

The MoneySmart Financial Advice Toolkit is a free educational instrument that breaks down complexities that shroud the financial advice process, Australia's financial watchdog said in a statement yesterday.

It is designed to assist consumers with their research efforts and help them evaluate the advice they receive, ASIC said. 

In addition, ASIC said its latest offering provides impartial advice on identifying financial goals and advice needs; tips on choosing an advisor; preparing to meet an advisor; understanding a statement of advice; and reviewing one's financial situation.

Consumers can also use the toolkit, which includes hyperlinks to ASIC's financial advisors register, to create a customised “to do” list, which users can modify to suit their personal needs.

“Australians face major financial decisions throughout their lifetime, many of which can be complex and confusing, yet only about one in five Australians obtain financial advice,” said ASIC's deputy chairman, Peter Kell. “ASIC recognises the value that quality advice can deliver and wants to see this increase.”