The Australian Securities and Investments Commission (ASIC) has provided further guidance on how it expects licensees and their representatives to prepare statements of advice (SOA) that are clear, concise and effective, as required under the Corporations Act.

ASIC has also announced the release of a new class order – statements of additional advice (SOAs) – to facilitate shorter SOAs for ongoing client relationships.

The new order provides relief to permit SOAs to “incorporate by reference” certain information that the client has received in a previous SOA.

ASIC says this will help to avoid duplication and, in many cases, will result in documents of only a few pages.

Financial Planning Association CEO Kerrie Kelly said: “The guidelines will help financial planners to produce shorter and more consumer-focused documents without compromising the accuracy or completeness of the information provided to clients, or the protection which the law provides them.”

Following submissions to ASIC in February and May this year, the association had talks with the regulator to represent the views of its members. Ms Kelly says the concerns are reflected in the new guidelines and the introduction of SOAs.