The Australian Securities and Investments Commission (ASIC) has issued more guidance on statements of advice (SOAs) after complaints that they are too wordy and have few benefits for consumers.

The regulator made the move after a large number of industry associations gave it examples of SOAs that weren’t up to scratch.

Executive Director FSR Ian Johnston says SOAs should be worded and presented in a clear, concise and effective manner.

“If SOAs are to be meaningful to consumers, compliance with presentation requirements is as important as compliance with content requirements.”

ASIC says many companies don’t provide a clear statement on the basis of their advice, and many don’t disclose the costs, loss of benefits and other consequences of switching financial products.

Some companies don’t effectively disclose remuneration and benefits, don’t properly present key information in their documentation and don’t tailor SOAs to the client.

Other SOAs contain irrelevant information, industry jargon that is not explained and repetitive content that adds to the document’s length.

ASIC issued the guidance a week after the Financial Planning Association released its own SOA guide for members.