What is a Statement of Advice (SoA)?

A Statement of Advice (SoA) is fundamentally a clear and concise summary of the financial advice provided to a retail client. It outlines the recommendations made to the client, the basis for those recommendations, and any relevant information pertaining to the client's financial situation. This document is crucial as it ensures that clients understand the advice being given and the rationale behind it, ultimately facilitating informed decision-making.

The SoA serves to clarify the adviser’s professional guidance while ensuring regulatory compliance, which emphasizes the importance of transparency in financial planning. By providing a structured and understandable format, the SoA enhances the client's financial literacy and promotes trust between the client and the adviser.

While the other options may relate to various financial documents or concepts, they do not accurately define the specific purpose and content of a Statement of Advice. It is not merely a contract, comprehensive financial plan, or legal disclaimer; rather, it focuses on summarizing the tailored advice given in a manner that is accessible and easy for the client to understand.