Which document is used to record a financial adviser’s personal recommendations to a client?

• A. Only ROA
• B. Only SOA
• C. ROA or SOA
• D. Neither

Answer: (C)

Recording a financial adviser’s personal recommendations can be captured in either of two documents, depending on the situation. A Record of Advice (ROA) is a concise, client-specific summary of the advice given, often used for a quick, follow-up note or when the guidance is straightforward. A Statement of Advice (SOA) is the formal, comprehensive document that sets out the advice, the basis for it, the recommended products or strategies, the costs, and any conflicts of interest.

Because personal recommendations can range from simple, short-term guidance to detailed, product-specific plans, both documents have a place. If the advice is straightforward or you’re providing a brief confirmation, an ROA may suffice. If the advice is more complex or intended to be the formal record to be relied on by the client, an SOA is appropriate. Therefore, the best choice is that either ROA or SOA can be used to record personal recommendations.