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Statement of Advice

When it comes to managing our finances, making informed decisions is crucial. Whether you are seeking investment advice, financial services, insurance coverage, or legal and tax guidance, a Statement of Advice plays a significant role. This article aims to demystify SOA and provide a comprehensive understanding of its purpose and relevance.

What is SOA and its Purpose?

A Statement of Advice, commonly referred to as SOA, is a document prepared by a financial professional or adviser that outlines recommendations, strategies, and solutions based on an individual’s personal circumstances and financial goals. It provides clear and comprehensive information to assist individuals in making informed decisions regarding their financial matters.

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.

Instances Where Statement of Advice is Required

  • Financial Services
  • Investment Advice
  • Insurance
  • Legal and Tax Advice

Financial Services

When engaging with financial service providers, such as financial planners, accountants, or mortgage brokers, a Statement of Advice is typically required. It ensures that the advice and services provided are suitable for the individual’s financial situation and objectives.

Investment Advice

Before making any investment decisions, individuals should seek professional advice. Investment advisors are legally obligated to provide a Statement of Advice that outlines the recommended investment strategies, associated risks, and potential returns.


When obtaining insurance coverage, particularly life insurance or income protection, a Statement of Advice is necessary. It helps individuals understand the various policies available, their coverage limits, premiums, and any exclusions that may apply.

Legal and Tax Advice

In complex legal or tax matters, seeking professional advice is crucial. Lawyers and tax consultants often prepare Statements of Advice to outline the recommended actions, legal implications, and potential tax consequences based on an individual’s specific circumstances.

Importance of Statement of Advice

A Statement of Advice holds immense importance as it provides individuals with a clear understanding of the recommended strategies and their potential impact. It ensures transparency and allows individuals to assess whether the advice aligns with their objectives, risk tolerance, and financial capabilities.

Who Requires Statement of Advice?

Anyone seeking professional guidance and recommendations for their financial decisions should consider obtaining a Statement of Advice. Whether you are a young professional planning for retirement, a business owner looking to expand, or an individual seeking insurance coverage, a Statement of Advice can provide valuable insights and assist you in making informed choices.

Financial Advisor and Client

Benefits of Obtaining a Statement of Advice

Obtaining a SOA has several benefits, including:

  1. Personalised financial advice tailored to your individual needs and circumstances
  2. A comprehensive analysis of your financial situation
  3. Clear recommendations and advice on how to achieve your financial goals
  4. Ongoing support and guidance from a licensed financial planner

How Long Does a Statement of Advice Take?

The time it takes to prepare a SOA varies depending on the complexity of the client’s financial situation and the scope of advice required. Generally, it can take several hours or days to prepare a comprehensive SOA.

How Long is a Statement of Advice Valid for?

The validity of a SOA varies depending on the advice provided and the individual circumstances of the client. Generally, an SOA is valid for a reasonable amount of time, which is usually 12 months.

A Statement of Advice is a valuable tool that provides individuals with tailored recommendations and guidance for their financial decisions. It ensures transparency, mitigates risks, and maximises the benefits of sound financial planning. By seeking professional advice and obtaining a Statement of Advice when required, individuals can make informed choices that align with their goals and aspirations.

When a Statement of Advice (SOA) is amended, a Record of Advice (ROA) can be provided. A ROA is a document that outlines the changes made to the original SOA. It serves as a record of the updated advice given to the client. The ROA includes the details of the amendments, such as the specific sections or recommendations that have been modified, added, or removed. By providing a ROA, the advisor ensures transparency and maintains a clear audit trail of the advice provided to the client. This helps both the advisor and the client track the changes made to the original SoA and understand the updated recommendations. The ROA is an important document for compliance purposes and provides evidence of the advisor’s diligence in reviewing and updating the advice when necessary.

How Opex can Help Advisers Provide a Statement of Advice?

Opex Consulting offers an innovative solution called Opex Suite , a plug and play solution, that allows you to fully optimise the capabilities of Xplan. This user-friendly tool  provides a Advice Constructor Wizard and allows you to customise your Statement of Advice (SOA) with your branding, providing a straightforward and reliable approach. By integrating seamlessly with Opex Suite  caters specifically to the requirements of individual advisers at an affordable price saving you time and money. Stay up-to-date with the latest strategy content aligned with regulatory modifications and fulfill your AFSL obligations effortlessly with this convenient, pre-configured solution provided by Opex Consulting.


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