At Everalls Wealth Management, we believe in empowering you to make informed decisions. When you sit down with one of our financial advisers, one of the most essential documents you’ll receive is called a Statement of Advice (SoA). But what exactly is it, and why is it so crucial?
Let’s break it down.
What Is a Statement of Advice?
A Statement of Advice, or SoA, is a legally required document that a licensed financial adviser provides when giving you personal financial advice. It outlines:
- Your financial goals and objectives
- Your current financial situation
- The recommendations your adviser is making to get you on track to achieving your goals
- The reasons behind those recommendations, including benefits, risks and other implications
- The costs and fees involved, and any conflicts of interest
- Product disclosure documents for each recommended product
Essentially, it’s your personalised financial roadmap — a detailed, step-by-step financial plan which also makes it easier to track progress towards achieving your financial goals and thereby serves as a reference point for future reviews and discussions.
Why Is an SoA Required?
In Australia, under the Corporations Act 2001, advisers are legally required to provide an SoA when giving personal financial advice that recommends specific financial products (including superannuation, investments & insurance). This is regulated by the Australian Securities and Investments Commission (ASIC) to ensure:
- Transparency: It serves as a formal record of the advice provided and must be written clearly and understandably.
- Accountability: advisers must justify their advice by clearly explaining the advice, benefits, risks and costs
- Protection: you’re safeguarded against poor or inappropriate advice because an SOA helps ensure compliance with regulatory requirements.
In other words, the SoA is not just paperwork — it’s a consumer protection mechanism that ensures you’re making informed decisions based on sound, well-explained advice.
What’s Included in a Statement of Advice?
A well-prepared SoA is tailored specifically to you. It typically includes:
- Your current financial position: assets, liabilities, income and expenses
- Your goals: whether you’re planning for retirement, buying a home, protecting your family, growing wealth or cementing a legacy
- Recommended strategies and products: for example, savings or debt reduction strategies, superannuation contributions or pension strategies, investment options, or insurance solutions, including the underlying product recommendations.
- Clear explanations of risks: because every financial move carries some level of uncertainty
- Fee breakdowns: how much you’ll pay for the advice and any products involved
Is an SoA a One-Off?
Not necessarily. You’ll receive a complete SoA the first time you’re given personal advice. Each year, we will then provide you with a shorter document called a Record of Advice (RoA). An RoA details any minor updates or changes to the strategies required as a result of regular changes in your personal circumstances, interest rates, tax rules, and investment performance. If there is a significant change in circumstances, then we will provide you with a new SOA detailing the updated strategy recommendations.
This ensures that our recommendations stay relevant as your financial journey evolves.
Why It’s Valuable to You
Receiving an SoA is more than just ticking a box — it provides:
Clarity: You’ll understand what’s being recommended and why
Peace of mind: Your goals and best interests have been appropriately considered
Legal protection: Your adviser is accountable for the guidance they’ve given
Confidence to act: You can make informed decisions with your eyes wide open
How We Approach the SoA Process at Everalls
We take the time to get to know you, your values, goals, and what matters most to you. Then we craft strategic advice that aligns with your vision of financial freedom and security. Each one of our recommendations is tailored to help you achieve a specific financial goal.
Our SoAs aren’t just documents, they’re the start of a personalised partnership designed to help you grow, protect and enjoy your wealth.
Understanding your Statement of Advice is a key step in taking control of your financial future. If you’ve received one and have questions, or if you’re considering working with a financial adviser and want to know more — our team is here to help.
We believe in making the complex feel simple, and ensuring you always feel informed, empowered and supported.
Need help understanding your SoA or preparing for your next big financial step?
Book a chat with the Everalls Wealth team — and let’s make smart, strategic decisions together.
