When Can a ROA Be Provided Instead of a SOA?

ASIC INFO 266 table — the 3 ROA situations, same-AR rule and copy rights

The 3 Situations — Table

Under notional s946B and ASIC INFO 266 FAQs, a Record of Advice can stand in for a Statement of Advice only where Parliament created an exemption. Outside these three, personal advice to a retail client needs an SOA before implementation.

Situation	When it applies	Copy to client?
Further advice	Previous SOA set out relevant circumstances; circumstances and basis not significantly different	Only if you request (7-year right)
No buy/sell advice	No product acquisition/disposal, no strategy or contribution change; no remuneration; conflicts disclosed	Only if you request (7-year right)
Small investment ≤$15,000	Total investments advice relates to ≤$15,000 (reg 7.7.09A)	Yes — with advice or asap, before any further service

Typical valid ROAs are stockbroker follow-on buy notes referencing an October SOA, or a free no-action appointment with no remuneration. Ongoing-fee clients almost never qualify for no buy/sell ROAs because remuneration exists. See SOA guide and RG 175.

Same Adviser vs Different Adviser or Licensee

The further-advice exemption hinges on providing entity continuity. If the same providing entity that gave the previous SOA gives the next advice and nothing significant changed, an ROA suffices. If you changed advisers, firms or licensees — even with the same human adviser now under a new AFSL — the new providing entity never gave the previous SOA and must give you a fresh SOA before any ROA can follow. ASIC INFO 266 is explicit: employed advisers moving licensees reset the clock.

Similarly, a significant change on either limb blocks ROAs: new job, inheritance, marriage breakdown, or a new basis such as SMSF rollover advice after a share-only SOA. Either triggers a full SOA with fresh s961B reasoning.

What an ROA Must Still Include

Shorter does not mean empty. At minimum the ROA must cover recommendations and basis (reasoning), plus s947B/D conflict and s947D switching disclosures where relevant — fees in dollars, lost benefits, CGT consequences. ASIC example stockbroker ROAs show the file note plus contract-note fee disclosure can jointly satisfy content if reasoning and conflicts are unambiguous. Records may be written or audio/video and must be kept 7 years under reg 7.7.09 and PF 209.

Time-critical small-investment advice has strict delivery: give the ROA when advice is given or asap before any further service, or within 5 days for instructed immediate execution (before any 14-day cooling-off starts). Further-advice and no buy/sell ROAs need only be produced on request within 7 years — but request it anyway.

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How to Check Your ROA for Compliance

Ask: does it name the previous SOA by date, confirm no significant change, state reasoning, disclose conflicts and s947D switching costs in dollars? Missing links to the parent SOA, missing dollar fees or missing conflict statements are the three most common ROA failures. Upload either document to our free checker — the six layers apply equally to ROAs and CARs.

Frequently Asked Questions

Can my new adviser use an ROA referencing my old firm's SOA?
No. Different providing entity means a fresh SOA first. An ROA alone here is invalid — request the SOA.

Do I automatically get an ROA copy?
Only for small-investment advice. Otherwise you must request it — licensees must comply for 7 years.

What if circumstances changed a lot?
Then an SOA is mandatory. An ROA that ignores a job loss, inheritance or new goals breaches s946B.

Does DBFO change ROA rules?
DBFO adds Client Advice Records alongside ROAs — see CAR guide and DBFO guide. ROA exemptions above remain.