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Issue 21 - April 2015

The FOS Approach to Adequacy of Statements of Advice

 

We handle many financial advice disputes in which a retail client says they did not understand the advice they received from the financial service provider (FSP). In these disputes, the quality and clarity of the information in the Statement of Advice (SOA) is a critical issue.

FSPs are required to provide an SOA to retail clients who receive personal financial advice. The SOA is a key document in assessing whether adequate disclosure has been provided to retail clients, to enable them to understand the advice provided to them and rely upon it.

FOS will analyse the SOA in all cases where this document has been provided to a retail client of an FSP with a view to determining if the FSP has complied with its obligations to the client under the Corporations Act.

Read more about the FOS Approach to Adequacy of Statements of Advice.

Visit www.fos.org.au/approach to see all the available FOS Approach documents.

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