The development of a new advice document presents a “blank canvas” for advisers to create a suitable document replacing statements of advice (SOAs).
Last week, Financial Services Minister Stephen Jones announced further details about the second tranche of reforms relating to the Delivering Better Financial Outcomes (DBFO) legislation.
This included reform statements of advice so they can help consumers make informed decisions.
“Replacing statements of advice with a principles-based record that is in plain English and addresses the client’s needs. This will reduce the cost of providing advice while ensuring clients receive helpful and accessible information that allows them to make informed financial decisions,” the documentation stated.
According to Adviser Ratings, the development of this new approach presents an “unprecedented opportunity” for practices to reimagine how they deliver and document advice to clients, with top practices taking a proactive approach rather than waiting for legislation.
“After 20 years of SOAs, now is a rare opportunity to take a genuinely blank canvas approach to advice documentation.
“The end of SOAs represents more than regulatory change – it’s an opportunity to transform how we deliver advice. Practices that embrace this opportunity to redesign their advice process around client needs while maintaining robust compliance will be best positioned for future growth. The most successful firms will be those that can balance innovation with practicality, creating systems that enhance efficiency and effectiveness.”
These practices leading from the front are using structured agendas that align with legislative requirements, leveraging screen sharing to demonstrate concepts in real-time and using AI to generate brief summaries for clients.
They are also using technology such as digital-first documentation, interactive modelling tools, data capture and video recordings. It is critical, in this regard, for various advice tools, CRM systems and client portals to be integrated to ensure a smooth process for both client and adviser.
“Leading practices are already exploring innovative approaches to advice delivery. The most successful firms view this as an opportunity to fundamentally rethink how they communicate and document advice rather than simply trying to replicate current SOAs in a different format.
“This approach, which is in line with broader industry trends towards more efficient, client-centric advice delivery, fosters a deeper connection between advisers and their clients,” it wrote.
