Switch ROA Overview

The purpose of this RoA Switch guide is to help in the generation of a Record of Advice (RoA) in the New Advice Framework, utilising best practice principles. The guide is aimed at ensuring the document provided is compliant and produced in the most efficient means possible.

Modelling the Switch in Portfolio's

Access Portfolio’s

Select Client Menu > Portfolios > Portfolio > Position.

Review Current Position

Ensure the client’s current position is accurate in XPLAN, in the Holdings Overview.

Model the Switch in IPS

Select Client Menu > Portfolios > Model > Recommend.

Create the transaction details of the proposed switch from the Recommend page, firstly by noting the amount to be sold down on the selected funds.

Secondly, adding the new fund into the portfolio by selecting Add >Holding

And then completing the details on the amount to be invested, and the fund to be invested in on the Add Holdings Screen. You can allocate either by Dollar Value, or Percentage as shown in Step 2 below.

Once all the funds have been allocated, select Save.

If done correctly, the new fund/s, will appear in the Investment Recommendations screen

Apply Disclosure Fee Sets

Apply a Fee Disclosure Set to all recommended portfolios, if this has previously not been
completed.

Select Client Menu > Portfolios > Model > Recommend.

Then access the Disclosure Fees Manager via selecting the Action Button > Fees

On the Proposed Disclosure Fees page, select the appropriate accounts, and the appropriate fee set to apply.

You have the ability to create your own Fee Disclosure Sets to apply if your recommended product is not in the Disclosure Fee List. For information as to how to do so, please read the Disclosure Fee Set Guide.

If you do not want to create your own Fee Disclosure Set for a product not in the list, use the Generic – Official Licensee Set Option. You will then need to make post merge edits to your document to ensure all fee information is correct.

Add Your Scenario

How to access the Advice Constructor Wizard

Select Client Menu > Wizards (NAF) > Advice Constructor

Name Your Scenario

Enter a Scenario Name and click on Create Scenario

Entity Advice Selector Page

Select the Entities

Select the entity/entities the advice relates to.

Click Next

Entity Advice Selector Page

Type of Advice Documents

Select RoA stand-alone from the Advice Document Selector

Click Next

Introduction ROA

RoA Setup

Select the appropriate options to create your Switch RoA.

Click Next

Scope of Advice

Verbal Advice

Make the appropriate notation if verbal advice was provided to the client.

And the subsequent notation if the client requested a written copy of the RoA, if applicable.

Important: The Record of Advice (ROA) Licensee Standard and the ROA Guide provides guidance to advisers as to when an ROA can be used to document further advice to existing clients and what must be included in an ROA. This also includes when a verbal ROA and written ROA is to be used and what in timeframes these documents need to be executed and/or provided.

Scope of RoA

Type in the scope of your Hold RoA, ensuring it is client specific.

Changes to Client Circumstances

Make the appropriate notation if all information has been provided by the client.

Click Next

Strategies Recommendations Page

Add the Switch Strategy

Within the Strategy Selection, Click Add

And setup the Investment Switch strategy for the appropriate client / partner

Review the prepopulated text in the Description, Reasons and Risks and Consequences tabs, and tailor to your client’s circumstances.

After amending the text in all 3 tabs, select Save

Click Next

Investment Recommendations (IPS) Page

Add the Investment Recommendations

Within the Investment Recommendations, Click Add

Investment Recommendations

Fill in the drop downs under Investment Recommendations.

Important: Use Switch of underlying investments (IPS) under the type of advice being provided.

Tip: Use the same name under Platform name as is used as the Account Name in Portfolios.

Complete the Reasons For and Risks and Consequences text boxes.

Click Save

Non Approved Products

Note if the recommendation includes and Non Approved Products

Recommended Asset Allocation

Select the type of asset allocation reports you wish in your RoA.

Asset Allocation Commentary

Within the Comments Selection, Click Add

Complete the Comments on the Proposed Asset Allocation.

NOTE: Comment on all individual asset class variances of +/- 10% as well as any Overall variance if it is +/- 10% from the recommended risk profile.

Click Save

Click Next

Additional Information Page

Understanding Series and PDS

Note how the Understanding Series, Fund Profiles and PDS’s are to be provided to the client (if required).

Click Next

Fees, Cost and Disclosures

Add any RoA Fees and Costs

Within the ROA Fees and Costs, Click Add

Add in the details on any Ongoing or Initial Adviser Service Fees, which are to be disclosed in the RoA, before clicking Save

Additional Disclosures

Select any additional disclosures that need to be included into the RoA.

Click Next

Merge ROA

Merge from XPLAN

Merge out your RoA by selecting the Advice Document.

Once the RoA has been generated, it will appear in the XPLAN notification envelope.

Post Merge Editing of ROA

Word Edits

Remove the non-required Fee Disclosure Information

Make the required post merge edits to the RoA document, by updating the FSG / PDS Information