What to Do After Receiving Your SOA

Read It Thoroughly

Your Statement of Advice is a legal document that should explain everything in plain language. Read it carefully from start to finish. Do not skip the fee tables or the fine print. If anything is unclear make a note and ask your adviser for clarification.

Check the Key Sections

Ensure your personal details are correct. Verify the recommendations match what you discussed with your adviser. Check the fee disclosure to confirm you understand what you will pay. Look for a clear explanation of why each product was recommended over alternatives.

Ask Questions

If something does not look right or you do not understand it ask. Your adviser is required to explain their advice in a way you can understand. Common questions include why a particular product was chosen what alternatives were considered and what the ongoing fees cover.

Next Steps

If you are satisfied with the advice and everything is clear you can sign the SOA to proceed. If you have concerns raise them with your adviser before signing. You have cooling-off rights on most financial products giving you time to change your mind after purchasing.

First Steps After Receiving Your SOA

After receiving your Statement of Advice, read it thoroughly. Do not feel pressured to make immediate decisions — you are entitled to take time to consider the advice. Check that your personal details and financial situation are accurately recorded. If there are errors, bring them to your adviser's attention as they may affect the appropriateness of the advice.

Pay particular attention to the executive summary and recommendations sections. Make a list of any questions or concerns you have. Your adviser should be willing to discuss any aspect of the SOA with you. Do not proceed with implementing the advice until you are comfortable that you understand and agree with the recommendations.

Evaluating the Recommendations

When evaluating the recommendations, consider whether they align with your stated goals and objectives. If you told your adviser you wanted to save for retirement, does the advice include a clear retirement savings strategy? If you expressed concern about risk, are the recommended investments appropriate for your risk tolerance? The SOA should clearly link each recommendation to one or more of your objectives.

Also consider whether the recommendations fit with your overall financial picture. If the SOA recommends increasing super contributions, does this fit with your current cash flow and other financial commitments? If the SOA recommends consolidating multiple super accounts, does it consider any insurance or benefit features you might lose by closing certain accounts?

Understanding Fees and Ongoing Costs

The fees section of your SOA should clearly disclose all costs. Make sure you understand: the upfront advice fee, any ongoing advice fees (annual or monthly charges), product fees (super administration fees, investment management fees), and any indirect costs that reduce your investment returns.

Ask your adviser to explain the total cost over 1 year, 5 years, and 10 years. Compare this with the expected benefit of the advice. If the fees are high relative to the potential benefit, ask whether there are lower-cost alternatives. Some fees may be negotiable.

Frequently Asked Questions

How long do I have to decide whether to implement the advice?
There is no legal time limit. Take as much time as you need. Some product offers or interest rates may have time limits, which your adviser should disclose.

Can I implement only part of the advice?
Yes. You are not required to implement all recommendations. Inform your adviser of your decision so they can adjust their implementation plan.

What if I change my mind after implementing?
Most financial products have a 14-day cooling-off period. Check your product disclosure statement. Some products like ASX-traded shares do not have cooling-off rights.

Should I get a second opinion?
If you have doubts, a second opinion is reasonable. Another adviser can review the SOA. This may cost additional fees but could provide peace of mind.

AFCA Complaints — What to Know

If you have a dispute with your financial adviser, AFCA provides free independent dispute resolution. In 2023-24, AFCA received 3,559 complaints about investments and advice. The most common issues were inappropriate advice, fees disputes, and poor disclosure. AFCA can award compensation of up to $1 million (with a $5.36 million cap for superannuation complaints). Complaints must be lodged within 6 years of the issue arising.

Step-by-Step SOA Review Process

When you receive your SOA, do not feel pressured to accept it immediately. Take the document home and review it carefully. Start by checking the personal details section — your name, date of birth, objectives, and financial situation should be accurately recorded. Any errors here suggest the adviser may not have fully understood your circumstances. Next, read the recommendations section and ask: does each recommendation clearly link back to an objective I stated? Is there a clear "why" for each product or strategy recommended?

Check the fees section carefully. The SOA must disclose all costs: the initial advice fee, ongoing fees, product fees (such as investment management fees), platform fees, insurance premiums, and any transaction costs. Add them all up and consider the total cost over 1, 3, and 5 years. Is the total cost reasonable relative to the benefit you expect to receive? Under FOFA, your adviser must also provide a fees and costs template that makes comparison easier. If the fee disclosure is unclear or incomplete, ask for clarification before signing.

Using Technology to Verify Your SOA

In addition to reading through your SOA manually, you can use tools like AdviserCheck to automate parts of the review. AdviserCheck scans your SOA for compliance with regulatory requirements including the best interests duty (s961B), suitability obligations (s961G), fee disclosure rules, and contradictions between your stated circumstances and the recommendations. The tool also checks whether the language in the document is clear and balanced, and whether conflicts of interest are adequately disclosed.

Using an automated compliance check alongside your own review provides a second layer of scrutiny. If the tool flags potential issues, discuss them with your adviser before proceeding. Remember that the cost of a compliance check is small compared to the financial impact of receiving inappropriate advice. Even if the check finds no issues, the peace of mind is valuable.