Frequently asked advice questions
Will the Cleardocs Statement of Advice (SoA) satisfy my FoFA and best interests duties?
Yes, the Cleardocs SoA will assist you to satisfy your FoFA and best interests duties because it:
- contains a statement that you have acted in the best interests of the client;
- includes a statement that you believe you have provided appropriate advice;
- includes a warning to the client if advice is based on incomplete or inaccurate information; and
- places the interests of your client ahead of your own interests.
To fulfil your FoFA requirements, you need to ensure the client has been provided with 2 Financial Services Guides (FSGs) — one from the AFSL entity and one from the individual person providing the advice — and you have kept the necessary records about the FSGs on file. The Cleardocs SoA document package does not include FSGs. You may contact our free helpline on 1300 307 343 and we can refer you to AccountantsIQ for FSG templates.
Is the Cleardocs product suitable if my client has more than one objective?
Yes, the Cleardocs SoA can cover one or more of the following objectives:
- establishing an SMSF;
- whether to use a corporate or individual trustee; and
- consider your existing super fund(s) and where appropriate to do so, rollover existing super funds into an SMSF.
Does the SoA cover the situation when I don't believe setting up an SMSF is in the best interests of the client?
Yes. There is a specific option to insert a statement to cover this situation.
What if the client doesn't provide me with all the relevant details I need, how does the SoA cater for this situation?
There is a specific option to insert a statement to cover this situation.
How long is an SoA considered current?
The Statement of Advice is current for 30 days. If the advice has not been actioned/implemented in this time, you will need to review the client's needs and objectives to ensure there have not been any material changes.
After 30 days, the SoA will need to be updated and/or an extension of time provided if no update is required.
Do I need to do a new SoA every time I provide advice?
No. A Record of Advice (RoA) can be provided in certain circumstances after an SoA has been provided:
- the client's relevant circumstances (needs, objectives and financial situation) are not significantly different to those in any previous advice; and
- the basis of the further advice is not significantly different from the basis of the previous advice.
Can another Partner of my firm present the SoA to the client if I am authorised and I have prepared it?
No. The person presenting the advice must be the one authorised to do so under the relevant AFSL.