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[Letterhead: ensure that your letterhead includes the name and contact details of the licensee

and its Australian financial services licence number. Where the licensee is a body corporate
include its ACN or ABN.]
[Note: ensure that you use this SOA when recommending that the client replace one product
with another or that the client reduce their interest in one product and increase their interest in
another product.]
[Insert date]

[Insert your reference number, if applicable]

[Insert clients name]


[Insert clients address]
Dear [insert clients name],
[Choose one subject line:]
re: Statement of Advice Replacement of Product
re: Statement of Advice Change of Level of Interest in Product
[Choose one opening paragraph:]
We refer to our discussion on [insert date] regarding [insert subject e.g. the withdrawal of
the clients benefit from a retail superannuation fund and the creation of a self-managed
superannuation fund] and now provide the following advice.
We refer to our discussion on [insert date] regarding [insert subject] and confirm our advice to
you as follows.
Scope of advice
Please note that, under the financial services licensing regime, we are only authorised to
provide financial product advice and to deal in relation to [delete as appropriate, according to
licence authorisations:] superannuation, securities and managed investment schemes. For a
fuller consideration of your objectives, financial situation and needs, we suggest that you see
your financial planner. If you do not already have a preferred financial planner, we refer you
to [insert name and contact details of financial planner].
On this occasion you have only sought advice about the following matters:

[insert information next to bullet points].

Your objectives, financial situation and needs


In summary, we understand your relevant objectives, financial situation and needs to be:

[insert information next to bullet points note that you will only need to summarise the
objectives, financial situation and needs relevant to the scope of the advice e.g. relevant
to superannuation choices].

Our advice
[Insert advice. Ensure that the advice given is within the authorisations granted under your
licence (and those granted to you as an individual). For example, if you do not have an
authorisation to advise and deal in relation to securities, you may not advise the client in
relation to investment in shares by their self-managed superannuation fund.]
Basis of advice
[Set out in easy to understand language the reasoning that led to the advice, including:
a summary of the clients relevant personal circumstances;
a description of the range of financial products or strategies considered eg. types of
superannuation funds; and
a statement of the reasons why the advice was considered appropriate.]

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[Choose one of the following sections:]


Consequences of replacing product
[Choose one of the following three paragraphs:]
You may incur the following charges if you dispose of [insert product e.g. shares in
company A] and acquire [insert product e.g. shares in company B]:

[insert charges next to bullet points including charges linked to disposal of product and
charges linked to acquisition of product].

You will not incur any charges if you dispose of [insert product] and acquire [insert product].
You may incur some charges if you dispose of [insert product] and acquire [insert product]
however we are unable to say what these charges are at this time.
[Choose one of the following three paragraphs:]
You may lose the following benefits if you act on our advice:

[insert benefits which may be lost, temporarily or otherwise].

You will not lose any benefits as a result of acting on our advice.
You may lose certain benefits if you act on our advice however we are unable to say what
these benefits are at this time.
[Choose one of the following three paragraphs:]
If you act on our advice your action may have the following additional consequences:

[insert consequences].

There will not be any further consequences as a result of acting on our advice.
There may be other consequences if you act on our advice however we are unable to say
what these consequences are at this time.
Consequences of changing level of interest in product
[Choose one of the following three paragraphs:]
You may incur the following charges if you reduce your interest in [insert product eg.
managed fund A] and increase your interest in [insert product eg. managed fund B]:

[insert charges next to bullet points including charges linked to reduction of interest in
product and charges linked to increase of interest in product].

You will not incur any charges if you reduce your interest in [insert product] and increase your
interest in [insert product].
You may incur some charges if you dispose of [insert product] and acquire [insert product]
however we are unable to say what these charges are at this time.
[Choose one of the following three paragraphs:]
You may lose the following benefits if you act on our advice:

[insert benefits which may be lost, temporarily or otherwise].

You will not lose any benefits as a result of acting on our advice.
You may lose certain benefits if you act on our advice however we are unable to say what
these benefits are at this time.
[Choose one of the following three paragraphs:]
[Insert client name]
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03/08/2004

If you act on our advice your action may have the following additional consequences:

[insert consequences].

There will not be any further consequences as a result of acting on our advice.
There may be other consequences if you act on our advice however we are unable to say
what these consequences are at this time.
Conclusion
[Insert a concluding paragraph as appropriate.]
If you have any further queries arising from the advice, please do not hesitate to contact us.
Yours faithfully,
[Insert name of representative]
[Insert name of licensee]
Disclosure pursuant to the Corporations Act 2001
If you act on our advice: [delete as appropriate]

[insert licensee name] will receive [insert details of remuneration, commission or


benefits*] from [insert name of provider of remuneration, commission or benefits e.g.
fund manager] [insert time licensee will receive remuneration, commission or benefits
e.g. after the clients self-managed superannuation fund has invested in the
recommended managed fund];

I will receive [insert details of remuneration, commission or benefits*] from [insert name of
provider of remuneration, commission or benefits] [insert time you, the writer, will receive
remuneration, commission or benefits];

other employees of [insert licensee name] will receive [insert details of remuneration,
commission or benefits*] from [insert name of provider of remuneration, commission or
benefits] [insert time the employees will receive remuneration, commission or benefits];

other directors of [insert licensee name] will receive [insert details of remuneration,
commission or benefits*] from [insert name of provider of remuneration, commission or
benefits] [insert time the directors will receive remuneration, commission or benefits];

our related body corporate, [insert name of related body corporate], will receive [insert
details of remuneration, commission or benefits*] from [insert name of provider of
remuneration, commission or benefits] [insert time related body corporate will receive
remuneration, commission or benefits];

employees of our related body corporate, [insert name of related body corporate], will
receive [insert details of remuneration, commission or benefits*] from [insert name of
provider of remuneration, commission or benefits] [insert time employees of related body
corporate will receive remuneration, commission or benefits];

directors of our related body corporate, [insert name of related body corporate], will
receive [insert details of remuneration, commission or benefits*] from [insert name of
provider of remuneration, commission or benefits] [insert time directors of related body
corporate will receive remuneration, commission or benefits].

[Delete as appropriate:]
[Insert licensee name], our related body corporate [insert name of related body corporate] and
our directors and secretaries have the following interests:
[Insert client name]
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[insert interests which could be considered to be capable of influencing the advice given].

[Delete as appropriate:]
[Insert licensee name], our related body corporate [insert name of related body corporate] and
our directors and secretaries have the following associations and relationships with product
issuers:

[insert associations and relationships with product issuers which could be considered to
be capable of influencing the advice given].

[Delete as appropriate:]
[Name of referring party] will receive [insert details of remuneration, commission or benefits*]
for referring you to [name of licensee] [insert time referring party will receive remuneration,
commission or benefits].
Warning
Our advice is or may be based on incomplete or inaccurate information relating to your
relevant personal circumstances. Accordingly, before acting on the advice, you should
consider its appropriateness, having regard to your personal circumstances.
[*Enter an amount or, if the amount is not discernible at the time of writing, a description of its
calculation.]

[Insert client name]


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