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Statement of Advice

Mar 09, 2016 (0) comment

What’s Included In A Statement of Advice?

A Statement of Advice is another name for a financial plan. When a financial adviser provides a client with personal advice, by law they must outline the recommendations or advice in what is known as a Statement of Advice (SOA for short).

What’s Personal Advice?

Personal advice is financial advice that takes into account your personal objectives, financial situation, requirements and needs.

What’s General Advice?

General advice is financial advice that does not take into account your personal objectives, financial situation, requirements and needs. It’s more factual product advice and no statement of advice needs to be prepared outlining this type of advice.

Legal Stuff!

If it’s General Advice, by law the authorised adviser has to warn you that the advice has been prepared without taking into account your objectives, financial situation or personal needs.

What’s The Purpose Of An SOA?

An SOA is a communication tool which provides you with all the important and relevant information about the advice and recommendations made, so that you can make a more informed financial decision.

Why’s 2 Cents!

Your SOA will be easy to read, concise and will effectively summarise the benefits of the recommendation(s) and advice made by your expert adviser.

What’s Included In A SOA:

Your Personal Needs and Objectives

Everyone’s needs and financial goals are different and as a result so are the recommendations or advice provided. Your Personal Needs and Objectives are listed in the SOA and are the basis of all recommendation(s) made.

Advice and Recommendation(s)

Our expert team will research and formulate the most appropriate recommendations for you based on the information you have provided. The recommendations made by your dedicated adviser are included in your Statement of Advice.

Basis of Recommendation(s) and Advice

Advice and recommendations made in your SOA will be backed up with detailed background information, calculations, graphs, comparisons and an appendix with all the relevant information and research used.

How and What We Get Paid

Your SOA will have a section on how we get paid and the commissions we receive for the recommendations made.

Interest, Associations and Relationships

All interests and associations with individuals and organisations are displayed in your SOA. These interests must be presented to show you that the advice in your SOA is genuine and hasn’t been influenced by incentives.

Appendix and Research

As part of a certified SOA there must be supporting research to justify the basis of advice made. Product information, comparisons and additional information will be included in the Appendix section of your SOA to give you a better understanding on why the advice is a match to your personal needs.

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