One of the biggest misconceptions about advice reviews is that they're designed to catch advisers out.

Of all the elements in a Statement of Advice, the documentation of client objectives is one of the most frequently criticised in compliance reviews. This article explains what the law requires when evidencing client objectives and how to capture them in a way that supports your advice.

Having a reasonable basis for advice is a fundamental requirement of the best interests duty. But the obligation does not end there. The SoA must also document that basis in a way that makes it visible to a reviewer. This article explains what good documentation looks like in practice.

Meeting the minimum content requirements of the Corporations Act is not the same as meeting ASIC's expectations. ASIC's approach to SoA compliance, set out in Regulatory Guide 175, consistently applies a higher bar. This article explains what ASIC actually expects and where it focuses its scrutiny.

One of the most common questions advisers ask about SoAs is whether theirs are long enough. It is rarely the right question. ASIC's standard is not about length, it is about completeness. This article explains what the law requires in terms of SoA detail and how ASIC interprets the clear, concise and effective standard.

An SoA must do more than state a recommendation. It must show the reader that the recommendation rests on a genuine analytical process. This article explains what evidence is required to support advice recommendations in an SoA and the forms that evidence typically takes.

Demonstrating the basis for advice is one of the most technically demanding aspects of SoA compliance. This article explains how advisers can satisfy s961B and s961G by making the analytical process visible within the SoA and avoiding the documentation gaps most commonly identified in reviews.

Risk disclosure in an SoA is not optional and not formulaic. The Corporations Act requires advisers to explain the significant risks associated with recommended products and strategies in terms specific to the client's circumstances. This article explains what that means in practice.

Under the best interests duty, an adviser must identify the client's relevant circumstances before providing advice. This article explains which client circumstances must be documented in an SoA, how specific that documentation needs to be, and the common gaps that lead to compliance findings.

The Corporations Act identifies two distinct disclosure obligations that must appear in every SoA: remuneration disclosure and conflict of interest disclosure. A third obligation, referral fee disclosure, is one of the most commonly missed requirements in practice.

The mandatory content requirements for an SoA are set out in sections 947B and 947C of the Corporations Act 2001. This article works through each of those requirements in plain terms: what the law says, what ASIC expects to see, and where advisers most often come unstuck.