The Statement of Advice is the blueprint that bridges client intent with strategic execution. Most practices already have solid SOA processes in place, but even with great systems, small gaps can creep in, often due to time pressure, handover breakdowns, or document fatigue.
Here are five common SOA pitfalls we’ve observed and how they can be addressed with small but powerful shifts.
1. Strategy Lost in Translation
What tends to happen:
The strategy discussed in the client meeting doesn’t always translate with the same clarity in the SOA, especially when paraplanners are interpreting brief notes or navigating tight deadlines.
How to address it:
- Use structured briefs or strategy papers that spell out not just the recommendation, but the thinking behind it.
- Embed a QA check that reviews whether the SOA reflects the client’s original objectives and context.
- If outsourced, work with teams who understand how to retain nuance, not just fill templates
When the strategy narrative flows clearly from objective to action, the SOA becomes a communication tool, not just a document.
2. Templates That Crowd Out Personalization
Templates are essential for consistency, but they can become a crutch. When templated content overtakes adviser-driven insight, SOAs can lose that client-specific sharpness industry standards expect.
What’s working well:
- Customizing key sections, especially the objectives, strategy rationale, and product replacement areas.
- Training paraplanners to highlight sections that could benefit from further context.
- Using internal QA to scan for “template creep” before an SOA is finalized.
The most effective SOAs feel like they were written for that client, even when built on a standard framework.
3. Underdeveloped Product Replacement Reasoning
Switching products can add value, but if the ‘why’ isn’t documented clearly, even when the advice is solid, it can open unnecessary scrutiny.
What helps mitigate this:
- A side-by-side comparison that explains not just the features and costs, but the reason for the switch in the client’s context.
- Notes on what was considered and ruled out.
- Clear alignment with stated objectives or client preferences
Good advice supported by good documentation builds confidence for all parties involved.
4. Fee Disclosure That Lacks Clarity
Even when all required fees are disclosed, clients can be left asking: “What am I actually paying for and why does it matter?”
How this can be improved:
- Linking fees directly to services: e.g., “AUD3,300 ongoing advice fee covers SoA preparation fee, Adviser service fee or implementation fees.”
- Clarifying whether fees are flat, asset-based, or split.
- Including cumulative fee impact in projections, especially for retirement and long-term scenarios.
Clearer fee communication = fewer client queries, fewer compliance comments, and more perceived value.
5. File Note and SOA Misalignment
Sometimes the SOA is perfectly worded but the file note doesn’t back it up. The strategy rationale may be in the adviser’s head (or discussed verbally), but if it’s not reflected in writing, that disconnect becomes a vulnerability during audits.
What to do to tighten this up:
- Use file note templates or checklists to prompt consistent capture of client reasoning and adviser thinking
- Make sure all key decisions are documented at the time of advice formulation, not just post-hoc
- Collaborate more closely with paraplanners to escalate missing elements early
Think of the SOA as the headline, and the file as the proof. Both need to speak the same language.
No advice practice is immune to pressure, time, volume, and evolving licensee standards all add complexity to advice delivery. But the firms that consistently produce high-quality SOAs aren’t necessarily spending more time, they’re just better at embedding process checkpoints that prevent rework and reduce review friction.
At Advice Lab, we help advisers tighten these processes through:
- Highly trained paraplanners who understand industry standards
- Dedicated QA layers that catch inconsistencies before the SOAs are finalized
- Briefing and documentation tools that reduce back-and-forth
If you’re looking to streamline your SOA production without losing quality or control, we’re here to help.
Want to talk about improving your SOA workflow?
Whether you need occasional support or a fully embedded team, Advice Lab has the structure, scale, and expertise to make life easier behind the scenes, so you can focus on what matters most: delivering great advice.
