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.”
The government has announced a post-implementation review of the removal of the stamping fee exemption.
Oliver Wyman and Morgan Stanley have outlined what to expect under ‘Wealth Management 3.0’.
HUB24 believes that the existing regulatory framework does not provide sufficient regulatory certainty to support industry in seeking to innovate and ...
Get the latest news! Subscribe to the ifa bulletin
Get notifications in real time and stay up to date with content that matters to you.