How to scope advice under RG 244, scale the fact-find, explain what is not covered, and prepare compliant SOAs and ROAs.
Financial advice construction·1 min read·3 sections
✓Checked against: ASIC RG 244 (updated Dec 2021) RG 244.58-244.95; ASIC RG 175.228-175.297; ASIC RG 90 Example SOA; Corporations Act 2001 ss946B, 947A-947D, 961B, 961H (compilation 19 Sep 2026).. Independent prep, not endorsed by ASIC.
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Must-know for the exam
✓All advice is scaled to some extent; scaled advice is held to the same best interests standard (RG 244).
✓You can give scaled advice to new, existing and potential clients, and on one issue even if authorised for many (RG 244.60).
✓Inquiries can be limited or expanded according to the subject matter and complexity (RG 244.71-244.72).
✓You need not list every topic not covered, but must explain relevant topics within the subject matter that are not covered (RG 244.90).
✓The same rules apply however advice is delivered: online, phone or face to face (RG 244.94-244.95).
✓The title 'Statement of Advice' must appear on the cover or at or near the front (s947A); a replacement recommendation needs s947D disclosure.
▸On this page · 3 sections
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Traps that cost marks
→Advice to do nothing can leave a client better off; a product is not required.
→The client can request a narrow scope, but the adviser remains responsible for whether it is appropriate.
→Scope limits are acceptable only when what is excluded is not affected by what is advised.
→Scaled advice still requires inquiries, just proportionate ones.
→Clarity about scope is a client-protection step, not a regulatory approval step.
→Length is not compliance; the Act asks for clear, concise and effective.
→Process failures may exist too, but the core problem is a product that cannot meet her needs.
→Higher yield usually means higher risk; it does not fix an unsuitable strategy.
The rule
Agree the scope with the client, check the scope is in their best interests, make inquiries proportionate to the subject matter, and record the scope and its limits clearly in the SOA.
Common traps
Trap: A client's request to narrow scope does not end the adviser's duty to check the scope is appropriate.
Trap: An SOA cannot refer to the FSG instead of disclosing remuneration.
Trap: An ROA is only available where circumstances have not significantly changed.
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