ASIC releases new life insurance SOA

The new example SOA, included in Regulatory Guide 90, was developed using behavioural research into how clients read and understand information in SOA documents, and is intended to assist advisers write SOAs that are “compliant, concise, easy to understand and written in plain English”.

“SOAs are a fundamental and important tool for an adviser to communicate their advice to the client,” said ASIC deputy chair Peter Kell.

“We appreciate the feedback we received on the draft example SOA and have taken it on board in finalising the guidance.”

Mr Kell said the new example SOA was designed to minimise the regulatory burden faced by advisers while still catering to the needs and interests of clients.

The release of the new example SOA is part of updates to RG90 ahead of the implementation of the incoming life insurance advice reform package, the regulator said.

“As part of these reforms, ASIC was asked to consider how to improve consumer understanding, and adviser use, of SOAs. Consideration of prominent, upfront disclosure of commissions in SOAs was a component of the review brief,” ASIC said.