When you seek financial advice in Australia, you might hear about a Record of Advice (ROA). But what does it really mean for you, especially with evolving regulations in 2025? Whether you’re revisiting your investment portfolio or tweaking your superannuation strategy, understanding the ROA could make a major difference in your financial journey.
What Is a Record of Advice (ROA)?
An ROA is a formal document provided by a licensed financial adviser when giving further advice to an existing client, particularly when the advice is related to matters already discussed in a previous Statement of Advice (SOA). Unlike the comprehensive SOA, the ROA is shorter and more streamlined, designed for situations where your circumstances haven’t significantly changed.
- Purpose: To document further or ongoing advice after an initial SOA.
- Efficiency: Cuts down paperwork for both advisers and clients, while maintaining compliance.
- Scope: Typically used for small adjustments, such as portfolio rebalancing or insurance updates, where your goals and situation are broadly the same.
For example, if you received an SOA last year outlining your retirement plan, and your adviser now suggests a minor portfolio tweak, they can issue an ROA instead of a whole new SOA.
2025 Regulatory Updates: What’s Changed?
This year, Australia’s financial advice industry has seen important changes impacting ROAs. The Quality of Advice Review, finalised in late 2024, prompted ASIC and the federal government to modernise documentation rules, aiming to reduce red tape while safeguarding consumer interests.
- Thresholds clarified: In 2025, ASIC clarified when an ROA is appropriate versus when a new SOA is required. If your goals, financial situation, or product recommendations have materially changed, a new SOA is mandatory. Otherwise, an ROA suffices.
- Digital ROAs: New guidelines allow ROAs to be delivered and stored electronically, provided client consent is recorded. This shift supports more flexible, paperless advice delivery.
- Consumer protection emphasis: Advisers must now explicitly confirm that the client’s circumstances have not changed since the last SOA, and that the further advice is consistent with prior strategies.
These changes aim to balance efficiency for advisers with transparency and protection for clients, especially as more Australians access advice digitally or through phone-based services.
When Should You Expect an ROA?
Not every chat with your adviser will result in an ROA. Here are typical scenarios where you might see one in 2025:
- Portfolio rebalancing: Your adviser recommends minor adjustments to your investments, in line with your existing risk profile.
- Product updates: Switching to a similar insurance policy or superannuation option, without fundamentally changing your objectives.
- Annual check-ins: If your adviser reviews your strategy and confirms no major changes are needed, they may issue an ROA to document the ongoing advice.
However, if you’re experiencing a major life event—like a divorce, inheritance, or significant income change—a new SOA will likely be required to reflect your new circumstances.
What Should You Look For in an ROA?
While an ROA is shorter than an SOA, it must still clearly outline:
- The advice given and the basis for it
- Any fees or commissions involved
- Relevant disclosures or conflicts of interest
- Confirmation that your circumstances haven’t significantly changed
Always keep a copy for your records—advisers are required to retain ROAs for at least seven years, and you can request a copy at any time.
Real-World Example: Using an ROA in 2025
Imagine Sarah, a 45-year-old teacher from Newcastle, who received an SOA in 2024 outlining her plan to boost super contributions. In 2025, after a routine review, her adviser suggests reallocating some of her super into a new low-fee fund that better matches her risk profile. Since Sarah’s goals and financial situation remain the same, the adviser issues an ROA, documenting the recommendation and confirming it aligns with her original plan. This process saves time and paperwork, but still ensures the advice is properly recorded.
Conclusion
Understanding how a Record of Advice works—and the 2025 updates—empowers you to get the most from your financial adviser while staying informed and protected. Whether you’re a seasoned investor or just starting your advice journey, knowing when and why you’ll receive an ROA can help you keep your financial plans on track.
