Introduction
Since the Financial Services Reform introduced the Corporations Act almost two decades ago, we have seen the Statement of Advice evolve into lengthy legal documents, to slightly shorter legal documents and now back to lengthy legal documents. The SOA is commonly full of disclosures and compliance requirements. However, ASIC has been encouraging the industry to work towards more clear, concise and effective documents.
Almost two decades on the industry is still stuck in a paper-based world with linear documents containing paragraphs of text. However, in many other aspects of our lives, we have moved towards better communication methods, led by advancements in technology for the end-user experience.
In this so-called white non-paper (a white paper without the paper), we review the SOA with fresh eyes, reassess its purpose and look into what the next decade of advice delivery could look and feel like for consumers.
We have engaged the advice technology community to provide insights on how tech can improve the advice experience and progress the evolution of the SOA.
Background
In August 2017, ASIC worked on Consultation Paper CP 284 Example Statement of Advice as an update to Regulatory Guide 90.
During this consultation process, the FPA advocated on behalf of their members that “there is an opportunity to consider that digital technology is becoming available, which will only improve over time.
This advancement in technology will allow for the more efficient production of SOAs, as well as a more effective communication tool by using icons, symbols, graphics, expandable and linked text, audio and video to better engage and inform clients.
Further digital technologies allow more information to be made available to a client (and any parties reviewing the advice) without being constrained by the number of A4 pages required to be printed“.
The FPA’s submission left the door open to present the digital SOA as we approach a new decade of advice; that time is now.
