Statement of Advice
A Statement of Advice or SOA is a formal document that outlines the recommendations a financial adviser is making for a particular client to help them to achieve their financial needs and objectives. Providing clients with an SOA is a legal requirement for all registered financial advisers with an Australian Financial Services License (AFSL). The primary purpose of a Statement of Advice is to provide tailored recommendations and guidance to individuals seeking assistance in managing their finances. It serves as a roadmap that aligns an individual’s financial goals with suitable strategies, investments, and insurance options.
Anyone seeking professional guidance and recommendations for their financial decisions should consider obtaining a Statement of Advice. In Australia, financial advisors are legally required to provide an SOA to clients when giving personal financial advice.
The purpose of a Statement of Advice (SOA) is to provide a clear and comprehensive overview of the financial advice given to a client by a licensed financial planner or adviser.
PlanWise assist financial advisors in preparing Statements of Advice (SoA) with a quick turnaround time. By utilising the expertise of our Paraplanning outsourcing services, financial advisors can save time, improve efficiency, and deliver high-quality SoA that meet the needs of their clients while ensuring compliance with regulatory requirements.
Our paraplanning team has software expertise on XPLAN, Midwinter, AdviserLogic, Platform Plus, IRESS and all other associated industry software.
To learn more about how we can benefit you, contact us at hello@planwiseservices.com.
Our Team of Paraplanning Experts make sure each document we create:
Explains complex strategies in simple, easy-to-understand terms.
Fits your client's unique goals and circumstances.
Meets all compliance needs without turning into a 80-page jumble of technical terms.
Record of Advice
A Record of Advice (RoA) is a concise document summarising financial advice provided to an existing client. It differs from a full Statement of Advice (SoA) by focusing on updates or follow-up recommendations, rather than comprehensive new advice.
Follow-up Advice:
Let’s say your adviser gave you a detailed plan (an SoA) a few months ago. Now, they’re providing advice that builds on that plan. Instead of giving you a new SoA, they might use an RoA to document this follow-up advice. Let’s say, if there are more suitable investments available for your portfolio which is appropriate and in line with your investment goals, an RoA can be used to incorporate these changes without repeating the entire financial plan.
Change in circumstances:
An RoA is also used when a client's financial or personal circumstances change. These changes can significantly impact their financial goals and strategies. In such cases, an adviser can provide updated recommendations through an RoA. For instance, if a client's income increases, allowing for additional retirement savings, an adviser can use an RoA to recommend increasing investment contributions.
Ongoing Advice:
As part of ongoing client service, advisers should provide a Record of Advice annually or semi-annually. This document serves to confirm the client's financial plan remains aligned with their goals and objectives, and to validate the ongoing suitability of the recommended strategy.
A Record of Advice (RoA) offers distinct advantages over a comprehensive Statement of Advice (SoA):
Efficiency:
RoA are typically more concise and can be prepared more expeditiously than SoA, saving time and resources for both the advisor and client.
Focus:By concentrating on specific updates or changes to an existing financial plan, RoA provide clients with relevant information without unnecessary detail.
Cost-effectiveness:Given their streamlined nature, RoA often involve lower preparation costs compared to the creation of a full SoA.
PlanWise streamlines SoA and RoA creation for financial advisors. Our experienced paraplanners and technology deliver high-quality, compliant plans quickly. We adhere to regulations and best practices. PlanWise seamlessly integrates with leading industry software like XPLAN, Midwinter, AdviserLogic, Platform Plus, and more.
Contact us today at hello@planwiseservices.com to discuss your specific needs and discover how PlanWise can help you achieve your business goals.