Statement of Advice (SOA) in 2025: What Australians Need to Know

For many Australians navigating the financial advice landscape, the Statement of Advice (SOA) remains a crucial—if sometimes confusing—document. As we move through 2025, the SOA is undergoing significant regulatory changes aimed at clarity and client empowerment. Whether you’re a first-time investor, considering retirement, or simply want to understand your adviser’s recommendations, knowing what an SOA is—and how to use it—can help you make smarter choices with your money.

What Is a Statement of Advice (SOA) in 2025?

A Statement of Advice is a written document provided by licensed financial advisers in Australia when giving personal financial advice. The SOA sets out the adviser’s recommendations, the reasons behind those recommendations, and discloses relevant fees, risks, and potential conflicts of interest. Under the Corporations Act, an SOA is mandatory whenever personal advice is given, ensuring transparency and consumer protection.

Recent regulatory updates by ASIC and the federal government in 2025 have put a spotlight on making SOAs more concise and client-friendly. In response to the Quality of Advice Review, advisers are now encouraged to use plain English, avoid unnecessary jargon, and structure the document so clients can easily compare options and outcomes.

• Key contents of an SOA: Adviser’s recommendations, reasons for advice, fees/commissions, risks, and alternatives considered.
• Who receives it? Anyone receiving personal (not general) financial advice from a licensed adviser.
• When do you get it? Before you act on the advice or as soon as practicable after it’s provided.

SOA Reforms in 2025: What’s Changed?

The past year has seen major changes aimed at simplifying SOAs. The government’s 2025 financial advice reforms—following the Quality of Advice Review—mean that SOAs must now:

• Be no longer than 8 pages (unless complex advice is required).
• Use clear, direct language with bullet points and tables for easier reading.
• Highlight key risks and alternative strategies upfront.
• Disclose all fees in a single, easy-to-read summary.

For example, if you seek advice about consolidating your super, your SOA will now directly compare the projected fees, performance, and insurance implications of your current and recommended funds. This shift is designed to empower Australians to make confident decisions without wading through technical jargon or hidden costs.

ASIC’s updated Regulatory Guide 175 (RG175) now also allows more digital delivery of SOAs, including interactive online documents that let clients drill down into the detail they care about most. This is particularly relevant for younger Australians who prefer digital-first financial services.

How to Read—and Use—Your SOA

Receiving an SOA is a pivotal moment in your financial journey. Here’s how to get the most value from it in 2025:

• Start with the executive summary: This section outlines the main recommendations and their intended outcomes.
• Review the fees and costs: All adviser fees, product commissions, and potential trailing fees must be clearly disclosed. Compare these to see if the advice is cost-effective.
• Understand the risks: Your SOA should spell out any downsides or potential losses, especially for investment products or insurance.
• Check for alternatives: Good SOAs will explain why certain products or strategies were not recommended.
• Make sure you agree: If anything is unclear, or if your personal circumstances have changed since the advice was given, ask your adviser for clarification or an updated SOA.

Real-world example: Anna, a 45-year-old Melbourne nurse, sought advice on boosting her super before retirement. Her 2025 SOA compared a salary sacrifice strategy with a one-off after-tax contribution, clearly showing the impact on her take-home pay and retirement balance under new concessional cap rules. Anna was able to see, in plain numbers and simple charts, how each option stacked up—empowering her to choose the best fit for her goals.

SOA Best Practices and Your Rights

The 2025 reforms reinforce your rights as a financial advice client. Always remember:

• You have the right to a clear, tailored SOA that addresses your specific needs and goals.
• You can request clarification or a revised SOA if your circumstances change.
• Advisers must act in your best interests and disclose any conflicts of interest.
• Keep your SOA as a record—it’s your reference if you ever want to review, complain, or seek a second opinion.

If you believe your SOA is unclear or incomplete, the Australian Financial Complaints Authority (AFCA) and ASIC’s MoneySmart website offer pathways for further action. In 2025, digital SOAs make it easier to store, search, and share your advice documents securely.

Conclusion

The Statement of Advice is evolving to become a more effective, client-focused tool in 2025. By understanding what’s in your SOA, recent reforms, and how to use it, you’re better equipped to take control of your financial future—whether it’s for investing, superannuation, insurance, or estate planning.