Financial Services Statement of Advice

Australia Financial Planning Wealth Management ASIC Compliance SoA BID FOFA

Overview

Generate and validate personalised Statements of Advice (SoA) for retail clients in Australia under the Corporations Act 2001 and ASIC (Wealth Management / Financial Planning). The skill ensures Best Interests Duty (BID) by linking client goals directly to product recommendations, and FOFA (Future of Financial Advice) compliance for Ongoing Fee Arrangement wording. It includes soa_logic_validator and fee_disclosure_checker to run over drafts before you provide the SoA to the client.

Example

You: I’ve drafted an SoA in soa/client_jones_2025.md. Can you check that we’ve demonstrated best interests and that the fee section is FOFA-compliant?
Agent: I’ll run both validators on that file. (Runs soa_logic_validator and fee_disclosure_checker.) BID check: client goals and recommendations are present and explicitly linked. Fee check: ongoing fee arrangement and consent wording are present; consider adding a sentence on annual renewal of the ongoing fee arrangement. I can suggest wording from the reference if you want.
You: Add the annual renewal sentence and then re-run the fee check.
Agent: (Adds a short paragraph on annual renewal and consent, then runs fee_disclosure_checker again.) Fee check now passes. FOFA wording is in place.

Excerpt of a generated document

The agent produces SoAs with clear goal–recommendation linkage and FOFA-aligned fee disclosure. Below is a condensed excerpt: client objectives, one recommendation with BID linkage, and the ongoing fee section.

Client objectives and recommendation (excerpt):

## 2. Your goals and objectives

- **Retirement:** You wish to retire at 65 with an income of approximately $60,000 p.a. in today’s dollars.
- **Risk tolerance:** You have indicated a moderate risk tolerance and prefer a balanced growth/income mix.
- **Estate:** You want to ensure your spouse is provided for and that a portion passes to your children.

## 3. Recommendations

### 3.1 Superannuation consolidation and allocation

**To meet your goal of retiring at 65 with a sustainable income**, we recommend consolidating your existing super accounts into a single fund and adopting a balanced (growth/income) allocation. This addresses your stated objective of moderate risk and long-term growth while keeping some defensive exposure.

We recommend [Fund X] for the consolidated balance because **it aligns with your need for** a clear fee structure and your preference for a well-rated, APRA-regulated fund. The suggested 60/40 growth/defensive split **supports your objective** of balance between growth and income as you approach retirement.

Ongoing fee arrangement (excerpt):

## 6. Fees and ongoing fee arrangement

We offer an **ongoing fee arrangement** for the advice and services set out in this SoA. The ongoing fee is [X% of FUM / $Y per annum], payable [quarterly in arrears]. **You have agreed in writing that we may deduct these fees** from your account(s) as set out in the authority you signed.

**Annual renewal:** This ongoing fee arrangement is renewed annually. We will send you a fee disclosure statement and seek your written consent before deducting fees in each subsequent year.

We are not independent; we are authorised representatives of [Licensee]. We receive [remuneration / benefits] as disclosed in the Financial Services Guide.

Extension tools and validations

The skill includes two tools that run over the SoA or fee document:

soa_logic_validator

Checks that the Statement of Advice demonstrates Best Interests Duty (BID) by linking client goals to recommendations:

Check	What is validated
Client goals/objectives	Document states client goals, objectives or needs (e.g. retirement, risk tolerance, estate)
Recommendations	Document contains clear recommendations or recommended strategy (products, actions)
Goal–recommendation linkage	Explicit linkage wording (e.g. to meet your goal of…, this recommendation addresses…, in line with your objective…) so each recommendation is tied to a client goal

The tool reports [OK] or [MISSING] for each. Result is BID checks passed or FAILED — BID is not adequately demonstrated. Run after drafting or editing the advice section.

fee_disclosure_checker

Validates Ongoing Fee Arrangement wording for FOFA (Future of Financial Advice) compliance:

Check	What is validated
Ongoing fee arrangement identified	Wording clearly identifies an ongoing fee arrangement (or FDS) where applicable
Client consent	Consent or agreement to deduct/charge ongoing fees (written consent required before deduction)
Fee disclosure	Clear disclosure of fees: amount or basis, frequency, when payable
Annual renewal	Mention of annual renewal, review or consent for ongoing fees (FOFA reforms)
Independence	If the adviser is not independent, that is disclosed

The tool reports [OK], [MISSING], [WARNING] or [INFO] as appropriate. Result is FOFA fee checks passed, PASSED with warnings, or FAILED with a list of issues. Run after drafting or editing the fees and ongoing fee section.

Getting Started

Add your source materials (client fact find, goals, existing SoA drafts) to the project workspace, then activate the Financial Services Statement of Advice skill. The agent will guide you through drafting the SoA, linking goals to recommendations, and running soa_logic_validator and fee_disclosure_checker before you provide the SoA to the client.