Streamlining SOA & ROA for 2025 Compliance

1. SOA/ROA Streamlining in 2025 | Financial Advice Compliance brokerssupport.com.au/blog/soa-roa-financial-advice-compliance/ September 15, 2025 SOA/ROA Streamlining in 2025: What Paraplanners Can Do Now Aagam Shah Paraplanning September 15, 2025 SOA/ROA Streamlining in 2025: What Paraplanners Can Do Now As we move further into 2025, the landscape of financial advice is becoming increasingly fast-paced, digital, and compliance-heavy. Paraplanners (or para planners) play a crucial role in this environment, especially when it comes to preparing key documents like the Statement of Advice (SOA) and the Record of Advice (ROA). With regulators focusing more than ever on accountability, clarity, and efficiency, streamlining the SOA process has become not just a best practice but a necessity. In this complex regulatory environment, many advisory firms are seeking outsourcing paraplanning support to manage their growing compliance workload more efficiently while maintaining high-quality standards. 1/6

2. In this article, we’ll explore why streamlining SOA and ROA preparation matters now, the key challenges paraplanners face, and actionable steps you can take today to simplify your workflow, all while staying aligned with evolving financial advice compliance expectations. Key Takeaways Streamlining the SOA/ROA process is essential in 2025 due to growing regulatory complexity and client expectations. Many firms are leveraging outsourcing paraplanning support to manage compliance workloads efficiently. Standardized templates and automation tools significantly reduce manual errors and improve efficiency. Staying updated with ASIC’s evolving compliance requirements is critical to avoid penalties. Paraplanning outsourcing helps firms future-proof operations while maintaining strong compliance and trust. Why Streamlining SOA/ROA Matters in 2025 The world of financial services has been evolving at breakneck speed, and regulatory frameworks are no exception. ASIC’s growing focus on compliance audits and enforcement means that advisers and their support teams must keep their processes both efficient and tightly compliant. As mentioned in the report by Money Management, ASIC’s newly unveiled Financial Advice Roadmap focuses on regulation simplification, aiming to reduce complexity and help financial practices adapt to the growing demand for efficient and compliant advice delivery. The time it takes to prepare an SOA or ROA has become a critical factor, not just for operational efficiency but for client satisfaction. Modern clients expect clarity, fast responses, and transparency in advice, which puts extra pressure on paraplanners to deliver high-quality documents without delay. Moreover, strong financial advisor compliance requirements now demand more rigor in documenting the reasoning behind advice, the product comparisons, and the client’s objectives and circumstances. Failure to do so risks significant penalties or even license suspension. Here’s a fact worth noting: According to recent industry reports, nearly 60% of advisory firms report that manual preparation of SOAs and ROAs is their biggest bottleneck. In such an environment, relying on outdated methods simply isn’t sustainable. 2/6

3. Key Challenges Paraplanners Face Today Despite their crucial role, paraplanners often face several hurdles when preparing SOAs and ROAs: 1. Manual and Repetitive Processes Most paraplanners still rely heavily on manual data entry across multiple documents. This leads to duplication of effort and increases the risk of errors. 2. Inconsistent Client Data Collection Collecting and verifying client information is often a fragmented process. Without a centralised repository, paraplanners spend unnecessary time chasing incomplete data or outdated fact-finds. 3. Time-Consuming Compliance Checks Ensuring that every document aligns with current financial advice compliance standards is daunting, especially when legislation changes frequently. Paraplanners need to cross- check multiple compliance requirements manually. 4. Difficulty Keeping Up With Regulatory Changes Staying updated on the latest financial advisor compliance requirements isn’t easy. New guidelines around what must be disclosed, how risks should be communicated, or when a legal advice letter to client is needed can change without much notice. 3/6

4. Actionable Steps Paraplanners Can Take Now The good news is that paraplanners don’t have to navigate this complexity alone. The following steps help improve efficiency while remaining fully compliant. Many firms also engage an outsourced paraplanner to provide independent expertise, helping to maintain compliance rigor while freeing in-house teams to focus on strategic advice. 1. Leverage Technology and Automation Paraplanners should start adopting specialised software solutions designed for SOA/ROA management. These tools can automate much of the repetitive work involved in document creation, data entry, and compliance checking. For example, digital fact-finding platforms can automatically populate client data into the SOA process, reducing manual errors. Automated compliance checks flag any missing or non-compliant sections, so paraplanners can focus on the quality of advice rather than compliance red tape. 2. Standardise Processes and Templates One of the easiest ways to reduce variability and errors is to create standardised templates for SOAs, ROAs, and related documents like the client letter of advice. Having consistent templates ensures all the necessary sections are covered every time. Consider developing clear checklists for each document stage. These checklists should include: Accurate data entry verification Compliance clause inclusion Clear explanation of advice rationale Over time, standardisation helps build confidence in the process and allows for easier team collaboration. 3. Stay Up-to-Date With Compliance Knowledge Ongoing learning is vital. Paraplanners should regularly review updates from ASIC, subscribe to industry newsletters, and participate in relevant webinars. A common mistake is assuming that yesterday’s compliance knowledge is sufficient today. Regulatory bodies now expect advisers and support teams to proactively manage compliance risk, and that includes knowing when a legal advice letter to client is required versus a general advice statement. 4. Improve Collaboration With Advisers Paraplanners often work behind the scenes, but improving direct communication with financial advisers ensures alignment on client objectives and strategy. By using shared platforms or cloud-based document management, version control becomes easier, and 4/6

5. misunderstandings are reduced. This practice becomes particularly important when producing the client letter of advice, which should clearly articulate the specific strategy agreed upon, rather than generic or boilerplate text. The Role of Data Management in Streamlining Centralised data repositories are becoming the backbone of efficient paraplanning. A well-structured client data system enables paraplanners to access accurate, up-to-date information without wasting time searching multiple sources. Beyond just storage, advanced systems now allow tagging of key information such as risk profiles, asset valuations, or specific compliance checkpoints. These digital ecosystems integrate directly with SOA generation tools, allowing for much faster turnaround times and reducing the chance of non-compliance. Maintaining accurate client data is no longer optional but essential, especially as ASIC’s August 2025 report emphasises the release of a one-off point-in-time dataset to help licensees correct information on the Financial Advisers Register Good data management doesn’t only improve speed, it ensures that every SOA process is audit-ready at all times, giving peace of mind during compliance reviews. Future-Proofing Your Paraplanning Practice What about the future? The rise of AI-powered tools in financial services is inevitable. Paraplanners should view this as an opportunity, not a threat. 5/6

6. AI can help generate draft advice documents, recommend compliance clauses based on client data, or automatically highlight regulatory changes affecting a particular case. But it cannot replace the expertise required to interpret complex client situations or advise on the best strategy. Therefore, para planners who upskill in these tools will not only improve their efficiency but also future-proof their careers. Additionally, regular process audits can reveal bottlenecks or compliance gaps before they become major problems. A simple quarterly review of your SOA process can save headaches down the line. Conclusion Streamlining the SOA/ROA process in 2025 is no longer optional, it’s essential. With increasing regulatory pressure, more demanding clients, and a highly competitive industry, paraplanners need to take action now. From adopting technology to standardising templates, improving data management, and staying informed on financial advice compliance trends, there are many small but impactful steps that paraplanners can take today. Start by automating the most repetitive tasks, ensure every client letter of advice follows best practices, and continuously update your compliance knowledge. These efforts not only boost efficiency but help maintain the integrity and quality of financial advice. In the evolving world of financial services, staying ahead means thinking proactively, because in 2025, efficient compliance isn’t just about ticking boxes, it’s about building trust. For many advisory firms, paraplanning outsourcing has become a key strategy to improve efficiency, reduce costs, and maintain strong compliance frameworks amid evolving regulatory expectations. © Copyright 2025. All rights reserved. Designed by NCS Corp Pty Ltd. 6/6