The Financial Planning Association (FPA) has released a simplified statement of advice (SOA) template aimed at slashing the cost of preparing financial advice.

FPA CEO Jo-Anne Bloch says the prescriptive nature of the Financial Services Reform Act compliance regime has seen a big increase in the cost of preparing documents, which has led to advice being taken out of the reach of many Australians.

The association’s simplified eight-page SOA template has been developed by financial planners and is designed to cut preparation time by 50%, saving consumers about half the normal cost.

The template includes a clear outline of strategies, risks and costs. It is written in plain language in line with a stated aim to help consumers make informed decisions about the achievement of financial goals.

Ms Bloch says financial planners are being strangled by red tape and lengthy disclosure with no direct benefit to clients.

The FPA will push the new Rudd Government to uphold a campaign pledge made by Mr Rudd to cut the red tape on financial products.

The FPA will seek industry support for the template and approval from the Australian Securities and Investments Commission.