What is a Statement of Advice (SOA)?

A plain-English guide for consumers who have received a financial advice document

What is a Statement of Advice?

A Statement of Advice (SOA) is a legal document that your financial adviser must give you when they provide personal financial advice. It explains what they recommend, why they recommend it, and how much it will cost you.

What Your SOA Should Include

Your SOA should clearly set out your personal circumstances, the recommendations made, the reasons for those recommendations, all fees and costs, any commissions or benefits the adviser receives, and information about what to do if you have a complaint.

The Best Interests Duty

Your adviser is legally required to act in your best interests under section 961B of the Corporations Act. This means they must investigate suitable products, consider alternatives, and base their advice on your needs not their own financial incentives.

What to Look For

Check that your SOA includes your goals and risk profile, clear recommendations with reasoning, itemised fees and costs, disclosure of any commissions or conflicts, cooling-off rights, and complaint handling information.

What Must Be Included in an SOA

A Statement of Advice is a formal document that a licensed financial adviser must provide to a client when giving personal financial advice. Under section 946A of the Corporations Act, the SOA must include: the advice recommendations, the basis on which the advice is given (including the client's objectives, financial situation, and needs), all fees and commissions payable, any interests or associations that may influence the advice, and prescribed warnings about the limitations of the advice.

The SOA must be clear, concise, and effective. It should be written in plain language that the client can understand, including the key information the client needs to make an informed decision about whether to act on the advice. The SOA should also include information about the client's right to complain and the availability of AFCA for dispute resolution.

Types of SOAs: Full vs Streamlined

Under the DBFO reforms, there are now two types of SOAs. A full SOA is required for complex advice scenarios such as establishing an SMSF, implementing complex tax strategies, or advice involving significant restructuring of a client's financial position. A streamlined SOA (or "simple SOA") is available for less complex advice, such as recommending a specific super fund or insurance product.

The streamlined SOA is shorter and more focused, containing only the essential information needed for the specific advice being provided. This reduces compliance costs and makes advice more accessible for Australians who need simple advice. However, advisers must carefully determine which type of SOA is appropriate for each client situation — using a streamlined SOA for complex advice can result in non-compliance with disclosure requirements.

Your Rights When Receiving an SOA

When you receive an SOA, you have important rights. You have the right to: understand the advice in plain language, ask questions about any aspect of the advice, receive a copy of the SOA free of charge, and take the SOA away to consider before making a decision. You are not obligated to act on the advice, and your adviser should make this clear.

You also have the right to complain if you believe the advice was inappropriate or not in your best interests. Your SOA should explain how to lodge a complaint with your adviser's internal dispute resolution process and with AFCA. If the advice has caused you financial loss, you may be entitled to compensation through the licensee's compensation arrangements or through AFCA.

Frequently Asked Questions

How long does an adviser have to give me an SOA?
The adviser must give you the SOA at the same time as the advice is provided, or as soon as practicable after. If the advice is provided orally, the adviser must give you a written SOA within 5 business days. The adviser cannot implement any recommendations until you have received and had a reasonable opportunity to consider the SOA.

Can I get a refund if I am not satisfied with the advice in my SOA?
If you believe the advice was not appropriate for your circumstances or was not in your best interests, you can complain to the adviser's internal dispute resolution process. If unsatisfied with the response, escalate to AFCA. You may be entitled to compensation including a refund of fees paid.

Do I have to sign my SOA?
There is no legal requirement for you to sign an SOA. However, your adviser may ask you to sign an acknowledgment of receipt to confirm you have received and understood the document. Signing does not mean you agree to implement the advice.

Can I keep my SOA for future reference?
Yes. You should keep your SOA as an important financial document. It records the advice you received, the basis for that advice, and the fees you agreed to pay. You may need to refer to it in future when dealing with your adviser, your tax adviser, or if you have a complaint about the advice.

Regulatory Context

A decade of reform has reshaped how advice must be given. FOFA (2013) brought in the best interests duty and outlawed conflicted remuneration. DBFO (2024-25) then scrapped the Fee Disclosure Statement, simplified consent for ongoing fees, and settled the legal footing for deducting advice fees from super. In parallel, the Quality of Advice Review (2022) proposes simplified SOAs and a new class of adviser — its Tranche 2 legislation was still in draft as of March 2025.