ASIC supports simpler SOA project
Jeremy Cooper
ASIC has come out in support of the Financial Planning Association’s (FPA) release of a 10-page example of a statement of advice.
Australian Securities and Investments Commission (ASIC) deputy chairman Jeremy Cooper said it strongly supported the FPA’s efforts to produce an SOA easily understood by consumers.
“Long statements of advice are a headache for everybody; they are neither necessary nor useful,” Cooper said.
“The FPA’s example is a major step forward in the ongoing challenge to shorten and refine documents to make them more user-friendly.”
Cooper said this should further the notion of ‘less is more’ for planners.
“A short and simple document that talks to clients in their language is much smarter than technical jargon and legal mumbo jumbo.”
“ASIC often sees statements of advice that are 40 or 50 pages long and some much longer. Some advisers think that a long document is required by law — they couldn’t be more wrong. The law says that statements of advice have to be clear, concise and effective.”
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