What is a Statement of Advice?
A Statement of Advice is the formal document that sets out personal advice given to a retail client. The obligation to provide one sits in section 946A of the Corporations Act 2001. The SOA must be given to the client, and it must contain the advice itself, the basis on which it was given (the reasoning and the facts relied on), information about the providing entity, and details of any remuneration, associations, or interests that could reasonably be expected to influence the advice.
The SOA is what most advisers think of when they think of "the advice document." It is the client-facing record of what you recommended and why. It is the document a client can take away, refer back to, and show to a third party. ASIC sets out its expectations on content and presentation in Regulatory Guide 175.
What is a Record of Advice?
A Record of Advice is a shorter document that can be used instead of a full SOA in limited circumstances. It is available where the advice being given is "further advice" - that is, advice given to a client who has previously received an SOA and whose relevant personal circumstances have not significantly changed since then, and where the basis of the advice has also not significantly changed. The relevant provisions sit broadly in section 946B of the Corporations Act and the further-advice rules.
The critical practical difference: the ROA does not have to be given to the client. You must keep it on the file, and you must provide it if the client asks. But it is not a client-delivery document in the same way an SOA is. That distinction matters both for your process and for how you explain things to clients.
There are other limited circumstances beyond the "further advice" situation where an ROA may be used - including some small-investment scenarios. The conditions are specific and your licensee will have their own documentation standards on top of the legislative ones. Do not assume an ROA is available simply because advice feels routine. The test is about circumstances and basis, not about the size or complexity of the recommendation.
What must an SOA contain under s946A?
Section 946A is specific. A Statement of Advice must include:
- The advice itself. What you are recommending.
- The basis for the advice. The reasoning behind it and the information about the client's circumstances that you relied on.
- Information about the providing entity. Who is giving the advice and under whose licence.
- Remuneration, associations and interests. Anything that might reasonably be expected to influence the advice - fees, commissions, referral arrangements, and any other material associations.
Your licensee will typically have a prescribed SOA template that builds on these requirements and adds its own mandatory sections. In practice, advisers rarely draft SOAs from scratch against the bare Act. But it is worth knowing what the Act actually requires, because those four elements are the minimum that every SOA must contain regardless of template or software.
SOA vs ROA vs file note: a side-by-side comparison
The three documents have different purposes and different legal requirements. This table sets them out:
| Statement of Advice (SOA) | Record of Advice (ROA) | File note | |
|---|---|---|---|
| Purpose | Formal record of personal advice given to a retail client | Lighter record of further advice where circumstances have not significantly changed | Contemporaneous record of what was discussed and instructed on the call |
| When used | Initial personal advice to a retail client; significant change in client circumstances or advice basis | Further advice where the client's relevant personal circumstances and the basis of the advice have not significantly changed since the last SOA | Every advice conversation - regardless of whether an SOA or ROA is required |
| Must give to client? | Yes - must be provided to the client | No - must be kept on file and provided on request | No - an internal record; kept on the file |
| Legal obligation | Section 946A, Corporations Act 2001 | Section 946B and the further-advice provisions, Corporations Act 2001 | Supports the best interests duty (s961B), appropriate advice (s961G), and the general obligation to keep records |
| What it records | The advice, its basis, provider info, remuneration and conflicts | The further advice given and the basis for using an ROA instead of an SOA | The conversation - what was said, asked, instructed, and agreed |
When does an ROA apply? The further-advice test in practice
The word "further" is doing the heavy lifting in the ROA provisions. The test is not simply "has this client received an SOA before?" It is whether the client's relevant personal circumstances have not significantly changed, and whether the basis of the advice has not significantly changed. Both conditions need to be met.
In practice this means you need to make a genuine assessment each time. A regular review call where the client's situation, goals, and product holdings are essentially the same as when the last SOA was prepared is the clearest case for an ROA. A review where the client has changed jobs, retired, sold a property, had a significant change in assets or debt, or is being advised on a materially different strategy is a much weaker case. If you are unsure, the safe position is an SOA. Your licensee's documentation standards will give you their own guidance on where they draw the line.
See what to record in a financial advice file note for more on documenting the circumstances assessment itself - the file note is where that judgment call should be captured.
Why neither the SOA nor the ROA is a substitute for the file note
This is the part that sometimes catches advisers out. The SOA is the formal advice document. The ROA is the record of further advice. Neither of them is a record of the call itself.
The file note does something neither document does: it captures what was actually said. The client's words about their goals and concerns. The questions they asked. The options you walked through. What they agreed to do and what they declined. The instructions they gave you. That is the evidence for your best interests duty under s961B. The SOA shows the destination. The file note shows the journey.
When a complaint reaches AFCA, or a review reaches your licensee, the assessor is trying to reconstruct your process from the file. An SOA or ROA with nothing behind it is a thin file. An SOA or ROA backed by a clear, contemporaneous file note that shows the conversation, the inquiry, and the reasoning is a strong one. The note is not optional just because you have the formal document.
The for financial advisers overview covers how Australian advisers are using CallNote across initial advice and review appointments, and what the file note looks like for each type.
Common questions from advisers
A few scenarios that come up regularly:
- "Can I use the SOA itself as the file note?" The SOA contains some of the information a file note needs, but it is not a substitute. It does not record what the client told you in the conversation, what questions they asked, or what was discussed and decided verbally. You still need a separate file note of the call.
- "What if the client declines to receive an SOA?" There is a limited opt-out provision in the Act for clients who expressly request not to receive an SOA in specific circumstances. The conditions are narrow and your licensee will have guidance on when it applies. An ROA is not the same as an opted-out SOA - they are different provisions.
- "Do I need an SOA for a product switch in a review?" Changing a product recommendation is generally a significant change in the basis of the advice, which would take you out of the ROA provisions and into SOA territory. This is exactly the kind of scenario where your licensee's documentation standards matter - check them.
- "What records do I need to keep and for how long?" The file-note and records obligations for financial advisers are separate from the SOA/ROA obligation. See ongoing fee arrangements and fee disclosure statements for how records overlap with the ongoing fee regime.
How CallNote helps with the file note behind the SOA or ROA
CallNote handles the file note of the call - not the SOA or the ROA, which your practice software generates. After an advice conversation, CallNote takes the transcript your phone system or meeting platform already produced and turns it into a structured file note in about two minutes. It never records your calls and never sends a bot to your meeting. It receives a transcript and generates the note from it.
You can paste a transcript directly, forward one by email, upload a voice memo, or connect a phone system like Dialpad or Aircall so every call transcript becomes a draft note automatically. You review the draft, then lodge and lock it: timestamped, SHA-256 sealed, with an append-only audit log so any later edit is an addition rather than a replacement. The result is a fixed, contemporaneous file note that documents what was said on the call - which sits behind the formal advice document and supports your best interests duty obligations.
CallNote is hosted in Australia, uses AES-256 encryption, and never uses client data to train AI models. It does not write your advice or tell you whether to use an SOA or ROA. It captures the conversation accurately and consistently, so the record of the call is on the file where it needs to be.
Common questions
What is the difference between a Statement of Advice and a Record of Advice?
An SOA is the formal advice document required under s946A of the Corporations Act whenever personal advice is given to a retail client. It must be given to the client. An ROA is a lighter document available in limited circumstances - mainly where the client has previously received an SOA and their relevant personal circumstances and the basis of the advice have not significantly changed. An ROA must be kept on file but does not have to be given to the client unless they ask.
When can I use an ROA instead of an SOA?
Broadly, when the advice is "further advice" and both the client's relevant personal circumstances and the basis of the advice have not significantly changed since the last SOA was prepared. The test has two parts and both need to be met. Your licensee will have documentation standards that build on the legislative provisions - check those before defaulting to an ROA.
What must an SOA include?
Under s946A of the Corporations Act, an SOA must include: the advice itself; the basis for the advice (the reasoning and client information relied on); information about the providing entity; and details of remuneration, associations, and other interests that might reasonably be expected to influence the advice. Your licensee's template will typically add more on top of those minimum requirements.
Do I still need a file note if I have prepared an SOA or ROA?
Yes. The SOA and ROA are formal advice documents - they do not capture the conversation itself. The file note records what was said on the call: what the client told you, what questions they asked, what options were discussed, and what was agreed. It is the evidence for your best interests duty obligations under s961B and is separate from the formal advice document.
Does this article constitute legal advice?
No. It is general guidance for Australian financial advisers. The Corporations Act provisions, ASIC RG 175, and your licensee's document standards are the authoritative sources. Get your own compliance or legal advice before making changes to how your practice documents advice.