In a bid to help its members create clear, concise and effective statements of advice (SOAs), the peak financial planning body has updated a guide that it published late in 2004.

The Financial Planning Association (FPA) publication “A guide to the development of effective statements of advice” has been comprehensively revised to take account of developments since 2004.

CEO Jo-Anne Bloch says the revised guide is designed to help members review their advice documents, offering ideas, examples and approaches for producing or improving SOAs, in terms of content and circumstances for use.

“An effective SOA must state clearly the adviser’s recommendations and the basis on which they are made,” she said. “The design and layout of the document, as well as the language used, plays an important part in that process.”

Some new areas covered in the guide include the extended situations in which statements of additional advice (SOAAs) can be used, and the introduction of records of advice.

It also deals with the FPA’s new professional standards covering alternative remuneration, rebates and related payments, and conflict of interest.

The FPA says the guide deals with issues raised by ASIC in relation to super-switching advice. There’s a requirement for advice to have a reasonable basis, the need for research on the funds and an explanation on the loss of any insurance benefits.

Ms Bloch says SOAs should be regarded as the central document in the relationship between a financial planner and client, not as a compliance tool or hurdle.