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Statements of Advice (SOAs)

Statement of Advice Warning: This SOA template only contains basic information. Please review the content carefully and amend to suit the licensee’s specific circumstances.

Purpose of this Statement

This is an important document and you should read it carefully. The statement sets out information about:

  • The personal advice we have given you and the basis for this advice;
  • How we are remunerated and any relationships or associations which may influence our advice;
  • Any conflict of interests we may have.

This advice is provided by:

Adviser: [Insert Details] [Licensee Name/ or Authorised Representative name AFS Licence No/AR Number (which ever applies): # Insert applicable number]
ABN: [Insert Details]
Address: [Insert Details]
Phone: [Insert Details]
Fax: [Insert Details]
Email: [Insert Details]

[If the providing entity is an Authorised Representative, insert: # We are an Authorised Representative of [Licensee Name, AFS Licence No # ABN # of # No Street Name, Suburb, State & Postcode and can be contacted on #Telephone Number] and act on its behalf in providing this advice.]

Currency and accuracy of advice

This advice was issued on [Insert Details] and is current as at that date. 

Our advice

Our recommendation is based on your need for general insurance of the type(s) listed below.

[Insert Details] [List policy details, sums insured etc]

The Basis of our advice

The advice we have given you is based on: Our consideration of the information provided by you (refer to warning above) in particular:

[Insert Details – complete with the information discussed]

[select, delete or add – for example, the needs analysis, proposal, Information collection form or information that has previously been provided.]

And

  • Our understanding of what is offered for this product by the insurers that we deal with regularly. We have not based our recommendation on what might be offered to you by other insurers;
  • Our consideration of insurance premiums/terms offered by the insurers that we considered for your needs;
  • The recommended insurers generally provide a good claims service;
  • Refer to our recommendations set out in our letter [Insert Details].
  • [insert any other factors]

Please tell us if any of the information provided to us by you is not correct, not current or does not accurately reflect your personal circumstances. If it does not, our advice may not be appropriate. You need to contact us or consider the appropriateness of the advice before acting on it.

Before you make a decision whether to accept our recommendation, please ensure that you have understood the advice contained in this Statement of Advice. If you are unsure, ask for clarification.

Relevant relationships and associations

[Choose the most appropriate]

There are no specific relationships, associations or referrals existing which have influenced the provision of this advice.

There are relationships and associations which may have influenced us in providing this SOA. These are:

  • We have paid the person/company who referred you to us.
  • We intend to place your risk under a binder arrangement with the insurer. This means we act for them and for you.
  • Other [specify]

Where this or any other circumstance (which may be deemed a conflict of interest) occurs we will tell you and any benefit obtained or paid will be outlined in the section “Our Remuneration – How we are paid”.

Our remuneration

[Delete items not relevant and/or amend wording to suit your situation.]

All amounts stated are inclusive of GST.

Commission $  
Fee for Service $  
Administration/Policy Fee $  

[Review the following and delete or amend as required. Please note, where the exact dollar amount can be determined it must be shown. Refer to RG 182.14 "Complying with the 'Amount in Dollars' requirements.]

[Company/AR] representatives are paid a salary but may also receive an annual bonus based on [specify i.e profitability, placement volume, etc].

[Insert Licensee Name] profit share arrangement with [Insert Details] based on [Insert Criteria]

As an [Authorised Representative] of [Insert Details] I will receive a proportion of the commission which is [Insert Details] and in addition I will receive [Insert Details] as part of ongoing commission.

We may receive other financial incentives from [Insert Details] [i.e. premium funding company for which we will receive $xx if you instruct us to arrange premium funding]

[Insert Name] is a referrer of [Insert Licensee Name] and who provided the introduction to us is paid an introduction fee out of commission/fees earned by us. This does not affect the total fee and charges paid by you.