FPA urges improvements to example SOA
The Australian Securities and Investments Commission (ASIC) can go further in improving its example statement of advice (SOA), according to the Financial Planning Association (FPA).
The FPA has made public its submission to ASIC’s Consultation Paper 284 dealing with the example SOA and suggesting the regulator can make further improvements prior to it being used as a model for the financial planning industry.
It said that while significant improvements had been made to the latest example SOA in terms of usability, the FPA had identified some areas that required further consideration and had put forward a number of recommendations.
FPA head of policy and government relations, Ben Marshan described the example SOA as a leap forward from previous iterations but said there was room to improve the customer experience.
“The presentation of information is clearer now than in previous SOAs. However, there are a number of changes that would further improve this example SOA,” he said. “We suggest the use of icons, symbols, graphics, audio and video in the sample would create a more engaging delivery of information to consumers.”
“As smartphone and tablet use make up 63 per cent of total time spent on devices in Australia, ASIC should further consider how it can encourage the digital delivery of advice using mobile technology.”
Marshan said the FPA was very supportive of improved remuneration disclosure and believed the SOA should demonstrate the value of the advice being provided to the client, then outline the costs and what the adviser is paid.
“We do not think it is appropriate for the SOA to begin with fees and remuneration disclosures,” he said. “We led with the FPA Remuneration Policy in 2012 to improve remuneration disclosure and we recommend ASIC consider the ideas our members came up with in this policy rather than the front cover disclosure ASIC has chosen to lead with.”
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