Thank you for the opportunity to comment on ASIC’s draft Regulatory Guide 90: Example statement of advice: Scaled advice for new customer and Consultation Paper 284. We appreciate the complex and extensive work, including consumer testing, which has led to the clear, useful and straightforward draft example SOA.
In our view, the example SOA will be effective if it is used to assist consumers to understand:
- the premiums they must pay for the recommended insurance, and how these can be paid,
- the total commissions the adviser will receive,
- the benefits, conditions and exclusions under the policy, particularly any exclusions relevant to them,
- the meaning of technical terms that are important to understanding the insurance, and
- the major consequences and risks of taking the advice.