Glossary
A plain-English reference for the terms used in Australian financial advice. Each entry explains what the term means, how it’s used in practice, and where it fits in the advice process.
Statement of Advice (SoA)
The formal document an Australian financial adviser must provide to a retail client when giving personal financial product advice for the first time, or following a significant change in their advice.
Record of Advice (RoA)
A simpler advice document that may be used in place of a Statement of Advice when further personal advice is provided to an existing client and the client’s relevant circumstances have not significantly changed.
Paraplanner
A financial services professional who supports a financial adviser by researching strategies, modelling outcomes, and preparing advice documents such as Statements of Advice.
Authorised Representative (AR)
An individual or entity authorised in writing by the holder of an Australian Financial Services Licence (AFSL) to provide specified financial services on behalf of that licensee.
Corporate Authorised Representative (CAR)
A body corporate authorised by an AFSL holder to provide financial services on behalf of the licensee.
Australian Financial Services Licence (AFSL)
The licence issued by ASIC under the Corporations Act that authorises a person or entity to carry on a financial services business in Australia.
Best Interests Duty
The statutory obligation on financial advisers to act in the best interests of their retail clients when providing personal advice.
Fee Disclosure Statement (FDS)
An annual statement that licensees and advisers must provide to retail clients with an ongoing fee arrangement, disclosing the fees paid and services received.
Financial Adviser
A person authorised under an AFSL to provide personal financial product advice to retail clients in Australia.
Statement of Advice Template
A reusable document structure that defines the layout, headings, and content patterns used to produce Statements of Advice consistently across a practice.