Statement of Advice

Set up your SMSF with the right advice.

Learn More Watch Video
SMSF Setup
Statement of Advice
Corporate Trustee
Investment Strategy
Electronic Service Address (ESA)

Statement of Advice

Being the trustee of an SMSF can be challenging. But while many SMSF trustees turn to their accountant for assistance, they can only provide advice on some SMSF-related matters, unless the are representatives (or have their own) financial licence.

At Xperion, we hold limited financial licence to ensure that we are truly qualified to give you the best advice, and at the same time are independent from investment providers.

Statement of Advice

To be able to setup and SMSF on your behalf, or to advise you on pension commencement, we need to provide you with a statement of advice.

This is to ensure that your personal circumstances are considered and you are provided with all relevant information to make the right decisions.

The Statement of Advice may begin by detailing your current financial position, your needs and objectives, and your attitude to risk. You may also find your planner’s reasons for giving the advice, possible risks and consequences of proceeding with the advice. It may also include an outline of why your planner believes the advice is in your best interests.

When you need to use a licensed accountant

Whether you are considering starting or closing your SMSF, you should seek professional advice and obtain statement of advice (SOA). Note that only accountants like us that hold financial licence can advise you on the following:

  1. SMSF establishment
  • Establish or wind up an SMSF
  • Advise on the appropriateness of an SMSF for your personal circumstances
  • Explain the suitability of different super investment options and funds
  • Recommend one super structure over another
  • Suggest consolidating or rolling over assets into a single fund
  1. Contributions
  • Recommend additional super contributions
  • Suggest establishing a salary sacrifice arrangement
  1. Pensions and withdrawals
  • Recommend starting a super pension or transition-to-retirement pension (TRIP)
  • Calculate the super pension amounts needed to meet your income requirements based on your account balance, life expectancy and estate plans
  • Organise an ad hoc lump sum withdrawal
  • Recommend rollovers out of an SMSF
  1. Investment assets
  • Recommend purchasing property through your SMSF
  • Prepare a tailored investment strategy for the SMSF
  • Recommend specific assets to buy when establishing an SMSF, including basic deposit products and cash management accounts
  • Recommend establishing a Limited Recourse Borrowing Arrangement (LRBA)
  1. Estate management
  • Organise a binding death benefit nomination
  • Recommend appropriate beneficiaries for a binding death benefit nomination.

Be careful of provider that do not provide you with statement of advice (SOA), as it is no longer legal to ensure your assets are protected.

If you would like to discuss any of the above, please contact our office.

Frequently Asked Questions

The SOA, among other financial advice disclosure obligations, aims to ensure that your clients receive good quality advice and are able to make informed decisions.

A Statement of Advice (SOA) is a document that sets out your situation and goals, and our corresponding financial advice. You will receive an SOA when we provide you with personal financial advice that takes into consideration your personal objectives, financial situation and needs. The SOA will contain:

  • the advice
  • the basis on which it was given
  • information about fees, commissions and associations related to the provision of this advice.

In addition to providing factual information about financial services and products (general advice), they can help with:

  • Taxation advice
  • Traditional accounting activities
  • Broad asset allocation advice
  • Referrals

Although accountants without an AFSL are permitted to provide execution-only services (like implementing an LRBA or investing assets) to an SMSF, they may require a Statement of Advice (SOA) from a licensed adviser before they will do so. This is to prove the accountant did not provide you with personal advice.

You may also find accountants who don’t hold an AFSL unwilling to comment on product recommendations in an SOA. However, they are still able to comment on the tax implications of making such an investment.