The FPA’s new professional standards on remuneration, rebates, related payments and conflicts of interest, statements of additional advice (SOAA) and records of advice (ROA) are new areas also covered.
A Guide to the Development of Effective SOA helps planners create “clear, concise and effective” SOAs to meet regulatory requirements and enables clients to make informed decisions.
“From a regulatory point of view we have three tools in our toolbox: SOA, SOAA and ROA. It’s important to understand how they might be used. Certainly the most significant of these is the SOA used when doing a first statement of engagement for a client,” FPA chair Corinna Dieters, who oversaw the guide’s revision, said.
Its aim is to help advisers assess their SOAs. The document allows clients to:
. Understand what the SOA is and who is responsible for providing the advice,
. Confirm the adviser has understood the client’s needs and circumstances,
. Find and understand the recommended advice,
. See the reasons for recommendations and the costs involved, and
. Understand how to act on the advice.
“The guide is designed to help members review their advice documents, offer ideas, examples and approaches for producing or improving SOAs, both in terms of content and circumstances for use,” FPA chief executive officer Jo-Anne Bloch said.
