FPA short form SOA imminent

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					                                          Independent Financial Advisor
                                          Monday 2/6/2008                                              Brief: TRENDS
                                          Page: 4
                                          Section: General News
                                          Region: National Circulation: 11,296
                                          Type: Magazines Business
                                          Size: 207.57 sq.cms.
                                          Published: M------

FPA short form SOA imminent
Victoria Papandrca                        should be doing. The SOA had quite       financial planning industry was
Following extensive        consumer       a sophisticated strategy and people      embracing the move towards a
testing and research, the FPA             still understood it, which was really    shorter SOA.
is ready to roll out its short form       good," she said.                           "We've had such fabulous
statement of advice        (SOA) to          It would be up to each licensee to    feedback and I'd be really surprised
industry.                                 determine how the short form SOA         if everyone didn't jump on board,"
  "We're   just finalising the            would work for them, she said.           she said.
consumer testing report and we've            "Advisers can use it as it is,           "Everyone knows they've got to
got the SOA down to 10 pages. So          they can add or subtract to it and       get over the hump and they want to
now it's just about plugging it in and    they can tailor it to their particular   do that."
getting it out there to the market        business model and their particular        The FPA supports moves by BT,
within the next few weeks," FPA           needs."                                  National Australia Bank, Axa and
chief executive Jo-Anne Bloch told          The FPA research found                 others that have recently rolled out
IFA.                                      consumers, who had all previously        solutions to assist financial planners
  "What we've done is we've proved        read an SOA, liked the short form        in cutting down the administration
that we can take a long document          document because they were less          burden of generating complex
and make it into a short document         likely to skip information.              SOAs.
that is compliant, user-friendly and        "The shorter document meant
that consumers actually under-            that they actually sat down and read       For example, BT Financial Group
stand."                                   it cover to cover and they were more     added new online advice software,
  The shorter SOA had been                inclined to actually understand          Midwinter's back 2 basis, to its wrap
designed using normal size font, it                                                platform to help advisers cut costs
cut out a lot of the duplication and      how it reflected the advice that was     and slash the time taken to generate
                                          given," Bloch said.                      SOAs.
words people did not like and used
language and a format the FPA had           "They also gave us some really           Research findings released by
                                          good feedback on language and            Investment Trends earlier this
 now consumer tested, Bloch said.
   "We haven't tried to cram the          jargons. They said don't use             month indicated a third of advisers
                                          acronyms at all; use tables, diagrams    found the single biggest technology
information in; we've used colour,
                                          and steps to make it really simple."     and systems challenge facing their
layout, the sorts of things that we
                                            Bloch said she believed the            business was SOA production.

                                         JO-ANNE BLOCH:
                                         fabulous feedback

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