Statement of Advictino

Your Company Logo
Client’s Name
Address Line 1
Address Line 2
Date
Dear <name>
Thank you for the opportunity to meet and present you with our
recommendations.
Our meeting, along with the completion of the confidential Fact Find and Risk
Profile Questionnaire has given us a clear understanding of your current
situation, goals and objectives, and your attitude to investment risk and
return, security and volatility.
From this information, we have developed your Statement of Advice (SoA).
Your SoA is a record of our recommendations and how they meet your
personal circumstances and goals, and includes information about the fees,
commissions and any other interests or associations that might influence our
advice. Please take the time to read this SoA and supporting material
carefully to ensure the details are correct and appropriate. If any details are
incorrect or have been omitted, please bring them to our attention prior to our
next appointment.
If your circumstances have changed or if this SoA is not implemented within
the next 30 days, we will need to revise these recommendations to ensure
they are still appropriate.
I thank you for choosing to use our services and will contact you within the
next two weeks to answer any questions you may have.
I look forward to helping you to implement these strategies and being of
continuing assistance.
Yours faithfully,
Sign
___________________
1 Covering Letter

Your Company Logo
Insert Adviser Name
Insert Adviser Qualifications
1.1
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Statement of
Advice
Confidential
Prepared for
(Insert client name)
Client Address Line 1)
(Client Address Line 2)
Prepared By
(Insert Adviser Name)
(Adviser Address here)
Authorised Representative of
Mentor Financial Planning Pty Ltd ABN 61 094
529 987
Australian Financial Services Licensee
Australian Financial Services License number
xxxxx
Level 18, 28 Bligh Street,
Sydney NSW 2000
Submission date
This report contains pages

Contents
1. Covering Letter
1.1 Cover Page
2. Introduction 1
2.1 Role of the Adviser 1
2.2 Scope of Advice 1
2.3 Disclaimer 1
2.4 Disclosure Document (Acknowledgement of receipt) 1
3 Executive Summary 2
3.1 Your Personal Situation 2
3.2 Your Financial Situation 2
3.3 Your Goals and Objectives 2
3.4 Risk Profile 2
3.5 Cashflow requirements 2
3.6 Recommendations 2
3.6.1 Wealth Protection 2
3.6.2 Wealth Accumulation 2
3.6.3 Estate Planning 2
3.7 Projected Results of Recommendations 2
4 Current Situation 3
4.1 Personal Situation 3
4.2 Your Goals and Objectives 3
4.2.1 Short-term 3
4.2.2 Medium-term 3
4.2.3 Long-term 3
4.3 Financial Situation 4
4.4 Income and Expenditure 4
5 Risk Profile 6
5.1 Your Profile Type 6
5.2 Different Profile Types 6
5.2.1 Preservation Investors 6
5.2.2 Moderate Investors 6
5.2.3 Balanced Investors 6
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5.2.4 Growth Investors 6
5.2.5 Aggressive Investors 7
5.2.6 Very Aggressive Investors 7
5.3 Appropriate Asset Allocation 7
6 Information Resources 8
6.1 Research 8
6.2 Financial Press/Daily Media 8
6.3 Investment Statements and Product Disclosure Statements 8
6.4 Product Provider Summaries/Performance Charts 8
7 Strategic Assumptions 9
7.1 Key Client Assumptions 9
7.2 Key Economic Assumptions 9
7.3 Key Legislative and Regulatory Assumptions 9
7.4 Clarification 9
8 Strategies 10
8.1 Wealth Protection – Keeping what you have 10
8.2 Wealth Accumulation – Building funds for retirement via
superannuation 10
8.3 Wealth Accumulation – Providing for your grandchildren’s future
education 10
8.4 Wealth Accumulation – Minimising the tax payable on your cash
investments 10
8.5 Wealth Accumulation – Paying off your mortgage before retirement 10
8.6 Estate Planning 10
8.7 Alternative Strategies 10
8.7.1 Wealth Protection – Keeping what you have 11
8.7.2 Wealth Accumulation – Building funds for retirement 11
8.7.3 Wealth Accumulation – Providing for your grandchildren’s future
education 11
8.7.4 Wealth Accumulation – Minimising the tax payable on your cash
investments 11
8.7.5 Wealth Accumulation – Paying off your mortgage before
retirement 11
9 Cashflow Requirements 12
9.1 Cashflow Table 12
9.2 Sufficient Surplus Income 12
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10 Insurance Products Selection 13
10.1 Key features 13
10.2 Supporting Documentation 13
10.3 Insurance Products to be Replaced (if any) 13
10.4 Benefits of Products Recommended 13
10.4.1 Price 13
10.4.2 Cover 13
10.4.3 Claims Process 14
10.4.4 Tax 14
10.4.5 Inflation Protection 14
10.4.6 Management 14
10.5 Lost Benefits/Cover 14
10.6 Other Consequences or Disadvantages of Switching Insurance
Products 14
11 Investment Products Selection 15
11.1 Key Features 15
11.1.1 Evaluation using Qualitative Measures 15
11.1.2 Evaluation using Quantitative Analysis Techniques 15
11.2 Supporting Documentation 15
11.3 Products to be Replaced (if any) 15
11.4 Benefits of Product Recommended 15
11.4.1 Capital Accumulation 16
11.4.2 Tax 16
11.4.3 Access 16
11.4.4 Flexibility 16
11.4.5 Diversification 16
11.4.6 Inflation Protection 16
11.4.7 Capital Growth 16
11.4.8 Professional Management / Review 16
11.5 Lost Benefits (if any) 16
11.6 Other Consequences or Disadvantages 16
11.7 Financial Asset Allocation Structure 17
11.7.1 Recommendation 17
12 Disclosure of Commissions and Fees 18
12.1 Total Commissions Payable – Life Risk (Inclusive of GST) 18
12.2 Total Commissions Payable – Investments (Inclusive of GST) 18
12.3 Initial Commission 18
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12.4 Trailing Life Risk Commission 19
12.5 Trailing Investment Commission 19
12.6 SoA Preparation Fee 19
12.7 Entry Fees 19
12.8 Exit Fees 19
12.9 Other Benefits and Interests 19
12.10 Fund Manager Payments and Sponsorships 20
13 Portfolio Review 21
14 Authority to Proceed 22
14.1 Rollovers and Redemptions (if any) 22
14.2 Insurances 22
14.3 Investment Placements 22
14.4 Variations - Rollovers/Redemptions 22
14.5 Variations - Insurances 22
14.6 Variations – Investment Placements 22
14.7 Non-Acceptance 23
14.8 Total Commissions Payable – Life Risk (on variations) 23
14.9 Total Commissions Payable – Investments (on variations) 23
15 Action to Proceed 24
16 Disclaimer 25
16.1 Information Limitations 25
16.2 Time Limitation 25
16.3 Offer Documents (Product Disclosure Statements) and Research
Reports 25
17 Client Declaration 26
18 Adviser Declaration 27
Appendix 1 - Quantitative and Qualitative Research Reports 28
Appendix 2 – Investment Summaries 29
Appendix 3 – Product Disclosure Statements 30
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1.1 Role of the Adviser
The financial adviser is to provide the advice to their client and to provide the financial
planning for the client. The main objective of the adviser is to give the advice and to
manage in respect of achieving the financial goal of the customers and enhance the
financial position of the customer. This financial adviser who provides professional
advice or recommendation to the customers’ needs to obtain the license to providing
their financial services to its customers. The main objective of the licence is to ensure
that the financial services provide by the accounting professional is accurate and true.
The professional adviser at least has bachelor degree along with the specific financial
planning course for Government of Australia.
1.2 Scope of Advice
The financial advisor advises their customers about the entire financial product
available in the market that can be beneficial for the client. Like Australian equities,
international equity as well as another balanced fund available in the market. The
consultant advises the different financial options to the client like mutual fund,
international share or the domestic share and the other investing options, which can be
beneficial for the
1.3 Disclaimer
While we have taken every care in the preparation of your SOA and we are confident of
the quality and accuracy of our advice, there are certain factors outside our control that
can have an impact on your SOA. These factors include:
 the completeness and accuracy of the information you have supplied;
 the accuracy of the information received from other financial institutions;
 any legislation introduced after the preparation of your SOA;
 different results to the estimates used to illustrate the future performance of the
investments in your SOA (please note, these estimates are not intended as
forecasts);
 whether you hold the investments for the length of time recommended;
 the economic environment in Australia and internationally; and
 changes to your personal circumstances.
These, and other factors, are constantly changing. Neither I, nor Mentor Financial
Planning Pty Ltd, accept responsibility for any change in circumstances that affects the
strategies covered in your Statement of Advice.
As outlined in the Financial Services Guide (FSG) provided to you on ................,
Mentor Financial Planning Pty Ltd does not guarantee the repayment of your capital or
any particular rate of return. Please note carefully that although historical investment
performance information may be provided, this is not necessarily an accurate guide to
future performance.
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2. Introduction