# Financial Services Statement of Advice

> Generate and validate personalised Statements of Advice (SoA) for retail clients in Australia. Ensures Best Interests Duty (BID) and FOFA ongoing fee compliance; includes soa_logic_validator and fee_disclosure_checker.



Tags: Australia, Financial Planning, Wealth Management, ASIC, Compliance, SoA, BID, FOFA


## Example Prompts

- Draft a Statement of Advice for a retail client with goals X and Y
- Check that our SoA demonstrates Best Interests Duty (goal–recommendation linkage)
- Validate the Ongoing Fee Arrangement wording for FOFA compliance

URL: https://rakenne.app/skills/financial-services-soa/index.md

Try this skill: https://rakenne.app/a/?skill=financial-services-soa



## 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):**

```markdown
## 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):**

```markdown
## 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.


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