When is a 'Record of Advice' (ROA) or 'Statement of Advice' (SOA) required?

• A. When distributing marketing materials.
• B. Only for corporate finance matters.
• C. In all cases regardless.
• D. Whenever providing personal financial advice or a personal recommendation relating to financial products to a client.

Answer: (D)

The main idea here is that a Record of Advice or Statement of Advice is needed whenever you are giving personal financial product advice that is tailored to a specific client. These documents capture why the recommendation fits the client’s personal circumstances, the basis for the advice, the risks, the costs, and any conflicts of interest. They create a clear, transparent record so the client understands why a product is being recommended and so you can demonstrate compliance with disclosure and suitability requirements.

General information or marketing materials aren’t personal advice, so they don’t trigger the ROA or SOA requirement. It isn’t limited to corporate finance either; the requirement applies whenever you provide personal financial product advice or a personal recommendation to a client. That’s why this option best fits: you issue an ROA or SOA whenever you’re giving personal financial product advice or a personal recommendation to a client.