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.”
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 22 Oct 2018ASIC reveals findings of CBA enforceable undertakingBy Adrian Flores
- 22 Oct 2018ARCO fund added to BT Panorama platformBy Adrian Flores
- 22 Oct 2018NAB well-placed to sell MLC wealth businessBy James Mitchell
- 22 Oct 2018CBA announces appointment of CFOBy Reporter
- 22 Oct 2018‘We’ve taken too long’ to fix advice problems: NABBy Adrian Flores
- 19 Oct 2018Life insurer fires 50, kills outbound sales businessBy James Mitchell
- view all