What Is a Statement of Advice — and What Should You Expect From One?

If you’ve decided to get serious about your finances and taken the step of meeting with a financial adviser, one of the first formal documents you’ll receive is a Statement of Advice. You might have heard the term (SOA for short), but unless you’ve been through the process before, it’s not always clear what it actually is, what’s in it, or why it matters.

Here’s what you need to know before you sit down with Greg and the MBC Wealth team.

What is a Statement of Advice?

A Statement of Advice is a legal document that your financial adviser is required to give you before you act on any personal financial advice. It puts in writing exactly what’s being recommended, why, and what it will cost you.

It’s the paper trail that proves your adviser has understood your situation and given you advice that actually fits your financial situation.

It’s not a product brochure. It’s not a terms and conditions document. It’s a personalised plan, written specifically for you, based on what you’ve told your adviser about your goals, your income, your assets, and your concerns.

Why does it exist?

Under the Australian Corporations Act 2001, any licensed financial adviser giving personal advice must provide a Statement of Advice. It’s regulated by ASIC and exists for a straightforward reason: to protect you.

Before this requirement existed, people could receive advice with no record of what was said, no clarity on costs, and no way to hold an adviser accountable. The SOA changed that. It creates a formal, documented record of the advice, the reasoning behind it, and any fees involved.

If something goes wrong, or you later question a recommendation, the SOA is your reference point.

What’s actually in it?

A well-prepared SOA covers your situation in full. You can expect to see:

• Your current financial position: income, expenses, assets, debts, super balance, and insurance arrangements.
• Your goals: whether you’re planning for retirement, building wealth, protecting your income, or planning for your family.
• The recommended strategy: what your adviser suggests and why — this might include super contributions, investment structures, insurance cover, debt management, or a mix.
• The risks: an honest explanation of what could go wrong and why the adviser still considers the recommendation right for your situation.
• Costs and fees: all fees, both for advice and for any recommended products. No surprises.
• Product recommendations: if specific products are involved, the relevant product disclosure documents will be included.

A good SOA doesn’t just tell you what to do — it explains the thinking behind it, in language you can actually follow.

Is it a one-off document?

The first time you receive personal financial advice, yes, you’ll receive a full SOA. After that, as your situation evolves, your adviser will typically provide a shorter document called a Record of Advice, or ROA, to capture any changes or updates to your strategy.

If something significant shifts, like a major inheritance, a business sale, a significant change in your health or family situation, then a new full SOA is prepared. For most people, the ROA process is what keeps the plan current from year to year without starting from scratch each time.

What to do when you receive one

Read it. That sounds obvious, but SOAs can be lengthy, and the temptation is to skim and simply sign. We recommend that you take the time to go through it properly.

Ask questions if anything isn’t clear. Your adviser should be able to explain any recommendation in plain terms. If they can’t, that’s worth noting.

Check that it reflects what you actually discussed. The goals, the concerns, the constraints, they should all be in there. If something’s missing or wrong, raise it before you sign anything.  Once you are happy with the recommendations, or any agreed changes, the advice is implemented.

You are not obligated to act on a Statement of Advice. You can take it away, think it over, and come back with questions. It’s your money and your plan.

Working with MBC Wealth

At MBC Wealth, we take the time to understand where you are financially and where you want to get to, before we make a single recommendation. The SOA you receive from us reflects that conversation, not a generic template.

As we approach a new financial year, now might be the perfect time to book in a chat. Reach out to Greg Thornton and the MBC Wealth team to get started.

General information only. The information in this article does not constitute personal financial advice and has not been prepared with your individual objectives, financial situation, or needs in mind. We recommend you seek personal advice from a licensed financial adviser before making any financial decisions. MBC Wealth is an authorised representative of Count Financial Limited, AFSL 227232.