Many statements of advice are too lengthy and complicated for clients to fully understand, according to fintech firm YTML.
In a statement, YTML general manager for advice Terri Ho said more than 80 per cent of the SOA templates the business has seen are over 40 pages, with the largest one presented to them reaching 130.
Ms Ho said clients are subsequently unable to decipher the documents they receive as they are still not as “clear, concise and effective” as they can be.
“In order to maximise engagement with the client, advice must be communicated clearly – from the simplicity of language to supporting research, to SOA length, format and presentation,” Ms Ho said.
“One of the simplest ways advice delivery can be improved is through the SOA.”
Ms Ho said many SOAs were longer than necessary due to the inclusion of information that should be included in other documentation.
“Many SOAs we remedy have usually become too long and more complex because of licensee and adviser disclosures on related parties and other conflicts of interest, as well as paragraphs of technical and general information,” she said.
“Much of the disclosure can and should be referenced within other advice documents, such as the financial services guide and product disclosure statements.”
There were 25 winners at the first-ever Australian Wealth Management Awards, held in Sydney tonight. The Australian ...
The shadow treasurer says there was an opportunity to improve the advice industry with the Delivering Better Financial ...
Superannuation funds have thrown their support behind the reforms but want a “clear statement” that they will not be ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin