SOA disclosure and platform requirements raise doubts
One of the Statements of Advice (SOA) requirements has been labelled unncecesary duplication by a legal expert, echoing fears raised by advisers about the growing compliance burden.
However, for the most part, advisers preparing SOAs should have little problem meeting their legal requirements, according to The Fold's managing director Claire Wivell Plater.
She said the issues should be able to be resolved without a change of legislation and advisers should start by shortening SOA templates and removing unnecessary detail.
Nonetheless, Wivell Plater raised concerns about disclosing details at multiple points and platform disclosure requirements, but said advisers won't be able to circumvent the steps if the legislation stands as it is.
"If an adviser has an ongoing fee arrangement with the client, they should not be required to include information about their fees in every SoA, or even to incorporate it by reference," she said.
"The client receives this information in their annual fee disclosure statements. Similarly, there should be no need to repeat information about associations and relationships that have already been disclosed."
She said the platform requirements are similarly unrealistic and out of touch with the way advisers select platforms.
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