ASIC issues new SOA class-order
By Craig Phillips
The Australian Securities andInvestments Commission (ASIC) has issued a direction on the issue of Statements of Advice (SOAs) by releasing a new class order to facilitate shorter SOAs for planners providing incidental advice.
Where there is an ongoing relationship with the client, advisers can simply provide investors with a Statement of Additional Advice (SOAA) through a new class order [CO 04/576].
The class order permits additional statements to ‘incorporate by reference’ elements of the information the client has already received in a previous SOA.
“[It] will benefit consumers and industry by facilitating the provision of shorter disclosure documents. This promotes the objective of clear, concise and effective disclosure,” ASIC executive director of financial services regulation, Ian Johnston says.
The move was well received, with the Financial Planning Association (FPA) backing it, saying it eases some of the post-FSR burden on advisers.
“The guidelines will help financial planners to produce shorter and more consumer-focused documents without compromising the accuracy or completeness of the information provided to clients,” FPA chief executive officer Kerrie Kelly says.
ASIC expects an SOAA to inform clients that it must be read with the original SOA; contain the new advice provided since the original SOA; highlight any changes since the original SOA; and repeat any required warnings and additional information required if recommending a replacement of one product with another.
Recommended for you
The profession is up by almost 200 advisers for the new financial year, with August continuing the consistent weekly positive gains.
WT Financial has announced its second “Hubco” with a combined valuation of $7.8 million, while its first one has successfully incorporated and is now making its own acquisitions.
The Australian Wealth Advisors Group has entered into a joint venture with a Melbourne financial services firm to launch a wealth manager.
Remediation and litigation costs have led AMP to announce a reduced statutory net profit after tax of $98 million for the first half of 2025.
