The Future of the SOA – The Australian Compliance Standard of an SOA
Listen to the audio version
READ THE TEXT VERSION
The Australian Compliance Standard of an SOA
The idea of standardisation around SOA templates and the framework of advice statements could also be considered. A set of standard SOA templates developed by the industry and promoted by ASIC would take a lot of pressure off compliance teams. The focus could then be toward providing the best possible advice to clients through modern methods of communication, enhancing the clients’ comprehension of advice. This approach, whilst outside the scope of this report, could be a focus in the near future.
Different interpretations of what is required in advice documents have created thousands of individual templates, interpretations and left the profession fragmented and inconsistent. This inconsistency puts too much focus on compliance and less on client understanding.
A level of standardisation of SOAs championed by the regulator will allow FinTech, AdviceTech and RegTech providers to create technology that can assess advice as it is created and any alterations can be made before the advice is provided to clients.
Prevention is better than cure.
In the new world of monitoring and supervision, AFSLs can improve their monitoring capabilities and assist both planners and licensees with their reporting obligations to the; industry, professional indemnity suppliers, regulators and enforcement agencies; including the new single disciplinary body now responsible for code of ethics monitoring.
Centralised data around compliance decisions could also create a benchmarking system that effectively creates an Australian compliance standard.