Statement of Advice
A written document Australian financial advisers must give to retail clients setting out the personal advice provided, the basis for it, and the disclosures required under the Corporations Act.
A Statement of Advice (SoA) is the document mandated by the Corporations Act 2001 (Cth) Part 7.7 whenever personal advice is provided to a retail client. The SoA must include the advice itself, the information the advice is based on, an explanation of why the advice is appropriate for the client, and required disclosures (fees, commissions, associations).
For a financial advice practice, SoA preparation is typically the largest single time cost in client onboarding — historically running to several hours per SoA — and the area where compliance reviews most often surface findings.
- 01
Personal advice given to a retail client.
- 02
Coverage of: the advice itself, the basis for the advice, fees and commissions, and any associations that might influence the advice.
- 03
Provision before, at the time of, or as soon as practicable after the advice is given.
- 04
Clear, concise, and effective presentation — under the Best Interests Duty standard.
The SoA is the artefact ASIC reaches for during a file review. It is also the artefact your supervision officer reaches for. Whatever workflow produces the SoA also produces the audit evidence that the Best Interests Duty was met — which is why automation only pays for itself if the citation chain is preserved end-to-end.