Blog Post

Efficiency
1 MIN READ

The myth of the mammoth SOA

nathan.fradley's avatar
nathan.fradley
Icon for Advisely Contributor rankAdvisely Contributor
2 months ago

If you asked every adviser to name one thing they could fix about the advice process, the vast majority would point to the length of the SOA. They're too long, too dense and the vast majority of clients don't even read them. 

Why is this, though? The gargantuan SOA is often treated as an inevitability, but what does the law actually prescribe? 

If you've ever wondered whether there's a better way, this video is for you. 

Updated 2 months ago
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SOA

3 Comments

  • courtney.youngblutt's avatar
    courtney.youngblutt
    Icon for Iress Contributor rankIress Contributor
    2 months ago

    Hear! hear! I could not agree more! 💯 Here's hoping that being reminded of what the legislation actually requires already will be a light bulb moment for advisers, and licensees in particular, around what good advice can look like. I'm cautiously optimistic, that regardless of what occurs next with DBFO, we will see a change in the way advice is provided and documented. 🤞

    • bill.bicopoulos's avatar
      bill.bicopoulos
      Network Navigator
      2 months ago

      You are correct and the big but is !!!!

      Dealer groups want to control and cover themselves and ultimately it’s dictating what happens to the view and content of the SOA…

      But it’s not just the SOA itself at all that the problem.. it’s the additional 300 plus pages that make up the document as attachments in pdf form for a client and then seeing if the even open up the attachments!! 
      Let alone going through them with the clients..

      As no company produces a pds it’s all via pdf… 

      For example the HUB24 Investment only pds not the platform pds is over 150 pages !!!!

       

  • mat.tenison3's avatar
    mat.tenison3
    Icon for Advisely Board rankAdvisely Board
    28 days ago

    Hi Nathan, a great video and reckon it resonates well with the industry! 

    Years ago, I visited an adviser friend who was licensed under Dover. Despite the scrutiny and eventual closure following the Royal Commission, I was really impressed by the SOAs they produced. While ASIC had concerns regarding the wording of their client protection policy, which is a separate issue, they did a great job maintaining clarity and conciseness in the SOA. They achieved this by using hyperlinks for generic information, allowing the advice document to focus on clear recommendations and the rationale behind them, along with the standard disclosures.

    I'm currently with a large AFSL, and as you mentioned, the documents are often bulky and difficult for clients to comprehend. It would be encouraging to see more progress from the major AFSLs, as this is one of the reasons many advisers are considering self-licensing—a path I'm also exploring.

    (I'm not even going to speak about AI as that's a whole other story which is unfolding and looking really exciting!)

    Cheers!

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