Regulatory Guide RG175 provides detailed guidance, among other things, on what must be included in a Statement of Advice or SOA. We have compiled an SOA checklist to help you build and design your SOA template.
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The title ‘Statement of Advice’ on the cover, or at or near the front, of the document.
The name and contact details of the Financial Adviser, the authorising licensee, its AFS licence number and state that the providing entity is the authorised representative of that licensee (if providing the advice as an authorised representative).
A statement setting out the advice, setting out the reasoning that led to the advice, including:
The basis for the advice should also set out the following:
The SOA should clearly disclose if recommendations are restricted to products from an approved product list.
Information about the remuneration, commission and other benefits that the Financial Adviser (and the other related or associated persons) will receive, that might reasonably be expected to influence the advice.
Information about the remuneration, commissions and other benefits that a person has received or is to receive for referring another person to the Adviser.
Details of any interests, associations or relationships that might reasonably be expected to influence the Adviser in providing the advice.
Provide a warning to the client if the advice is based on incomplete or inaccurate information.
For switching advice: The SOA should state that the client’s existing product has been considered, and should include the following information: