File Notes Thumbs-up

Our latest poll results suggest most advisers agree their file notes should form the basis of any future advice record that will replace Statements of Advice.

As we go to print, almost three quarters (73%) of votes are in favour of the proposition, while 23% disagree.

As the industry mulls over what should constitute what the Financial Services Minister has referred to as a record more ‘fit for purpose’ to replace SoAs, it appears most advisers support Bombora Advice MD Wayne Handley’s contention that file notes should be an integral part of the solution (see: Call for File Notes to Replace SoAs).

What strikes us here is that the financial advice profession appears to have the opportunity to shape its own destiny on this issue, with discussions currently taking place between industry representative bodies and the law-makers and regulators in Canberra.

Notes of caution have been sounded, however, not least of which is the potential – in a future dispute, warns one adviser – for file notes to be altered, whereas existing SoAs cannot. Providing contemporaneous copies of the file notes to clients – who would initial the originals and retain their own copy – would appear to go at least part of the way to address this point.

Click here to review the recent MetLife Round Table panel discussion on file notes potentially replacing SoAs, as we welcome your further thoughts on this issue; our poll remaining open until next week…