Under the Corporations Act, when is an SoA required to be given to a client?

An SoA, or Statement of Advice, is a formal document required under the Corporations Act when financial advice is provided that is personalized to a client's specific circumstances. The purpose of the SoA is to clearly outline the advice being given, the basis for that advice, and any relevant information regarding the risks, benefits, and costs involved in the recommendations made.

When personal financial advice is tailored to a client's needs, it means the advice is specific and takes into account their individual financial situation, goals, and preferences. This is a critical moment because it establishes the fiduciary responsibility of the financial advisor to ensure that the client understands what they are being advised to do and why. The SoA serves as a transparent communication tool that enhances the client's understanding of the advice and provides a written record of the advisor's recommendations.

In contrast, providing an SoA only during the first meeting would not address the ongoing nature of financial advice, and giving it after all financial products have been sold would fail to set out the advice in advance, prior to implementation. Similarly, while periodic compliance statements might be necessary for regulatory reasons, they do not serve the same purpose as an SoA in the context of personalized advice. Thus, the requirement for an SoA