SOA Construction & AdviserCentral Update

1. SOA Construction & AdviserCentral Update MLC Advice Solutions – SOA Training Team August 2009

2. SOA Training Team Who are we? • Part of ThreeSixty Education & Training, a Registered Training Organisation What do we do? • Develop & maintain SOA templates for: • Self-employed advisers • MLC Alliance Partners • NAB Financial Planning • Training, including: • Paraplanner Bootcamp – small group training • Paraplanner Academy – intensive tailored training • AdviserCentral & SOA Coaching – tailored “in your office”

3. Contents • The Enhanced SOA • Background • The main changes • SOA formatting & styles • What is a style? • Using formatting and styles • Non-standard SOA content • To use or not to use? • AdviserCentral Release 6 • Coming soon… • Questions

4. The Enhanced SOA

5. Background Enhancing the Statement of Advice (SOA) • Simplified SOA: released by Financial Planning Association (FPA) June 2008 • Project team: MLC Advice Solutions & NAB Financial Planning • Aim: an ‘undiluted’ client experience • Stakeholder consultation: October to December 2008: • Concept SOAs • SOA questionnaires • Release: Enhanced SOA released in April 2009 • For further background information, see AdviserPoint: Home > SOA Solutions > SOA Understanding Series & SOA Support Presentations

6. Changes to the SOA What has changed? • More client-focused • More client-friendly • Greater linking to client goals • Achievement vs non-achievement of goals • More visual - tables, graphs, & flowcharts • Improved flow & heading names • More consistent & readable formatting and styles • Less generic information • Clearer and more concise

7. Enhanced SOA Where you are now What you want to achieve How to get there Achieving your goals Products we recommend What you need to know What you need to do Further information

8. What you want to achieve Your lifestyle goals • Tables organises information • Clear & concise • Goal: short concise label for each goal… • Detail: clearly defines each goal • When: timeframe or target date

9. How to get there Overview of our advice • Flow chart • Visual summary • Outlines main strategies • Available for common strategies • Optional • Replaces written summary

10. How to get there Scope of our advice • New location • States the scope of the advice only • Warnings moved to other sections

11. How to get there The impact on your cash flow • Simple summary in words of… • …cash flow • …taxation

12. How to get there The impact on your cash flow….with a new table • New cash flow table • Simplified • Current vs Proposed • Side-by-side comparison • Replaces four pages

13. Achieving your goals Goal achievement – Yes or No

14. Achieving your goals Can you achieve your goals? • New section • Visual • Clear & concise • Transparent • Concludes the strategy section • Every goal is addressed

15. Fully achieved? Client needs to know Informed decision-making Alternatives? Goal conflict? Re-assess the goal? Enables compromise Ongoing service Achieving your goals ….not all goals can be fully achieved

16. What you want to achieve Achieving your goals How to get there Goals, goals, goals …goals are the focus • Goal-focused • Goal labels • Links strategy to goals • Links SOA together

17. What you need to do How to proceed • Table organises information • Clear & concise • Who: responsible party • What: activity required • When: timeframe or target date • May be used to track implementation & follow-up

18. Further information Related documents you should read • New location • More concise • Incorporation by Reference (IBR) • Hard copy & electronic IBR

19. Understanding Series Understanding financial advice • Updated • Text moved from SOA • Word versions in AC • PDF versions on AdviserPoint public and private sites

20. Recent changes Now in place • Understanding Business Insurance • New Understanding Series • Supports Business Insurance advice • Proposed legislation changes • Compliance • Disclosures (ongoing $ figures) • Important information (tax advice) • Related documents (MLC CDs & PDSs)

21. Future changes What’s next? • Ongoing SOA development & improvement • Business Insurance advice templates • SOA questionnaire

22. SOA formatting & styles

23. Formatting & styles What is a style? Microsoft Word defines a style as: “a combination of formatting characteristics”, such as: • font • font size • indentation • spacing • When applying a style: • all formatting is applied at once • wording does not change

24. Styles in the SOA Why use styles? The SOA uses a family of styles which: • complement each other • are different from each other • may each be used for a different purpose Benefits: • Presentation • Consistency • Hierarchy • Association • Time savings • Document map…

25. Styles in the SOA The main styles include: Note the use of: • size • colour • bold & italic • spacing • indentation Each style is used for a different purpose

26. Styles in the SOA Applying a style Select the text you wish to apply a style to Then select a style from either: The style box OR The task pane To view the task pane: • Format menu: select “Styles & Formatting”

27. Task pane Task pane…what is it? The task pane provides fast access to common commands Tip: if “Styles and Formatting” is not displayed in the task pane, select it from the drop-down menu Tip: select “Available styles” at the bottom of the task pane to show only built-in SOA styles

28. Applying a style An example: Before • Select text • Select the style to apply After

29. Document map Document map…what is it? The document map uses styles to display a list of headings. Styles in use must be set up correctly. To view the document map: • View menu: select “Document Map”

30. Document map Tip: within the document map, right-click a plus (+) or minus (-) next to a heading, and select “Show Heading 1”

31. Document map Document map…using it Move quickly around your SOA when editing. Click on a heading to jump to that point in your SOA. click

32. Non-standard SOA content

33. What is “non-standard” SOA content? Non-standard SOA content is: • Different from the Licensee’s standard text… …or text that is not provided by the Licensee • Regularly part of your SOAs • Used for many clients and SOAs… …that is, not personalised to a specific client…(yet) Examples: • A large re-usable all-in-one SOA Word document • A small Word document which replaces a similar standard SOA template

34. Using non-standard SOA content Do you use non-standard content in your SOA? • Commonly-customised SOA templates include: • Covering letter • Ongoing service • How to proceed • Why customise? • Your wording • Your offering • Your business

35. Risks of non-standard SOA content Be informed about the risks. • Your content – your responsibility • Is your content compliant? • Licensee makes changes to standard SOA content • You must monitor • You must implement • Time (=cost) penalty for you to design and maintain • How many templates? • How much time? • Do the benefits outweigh the extra time and cost? • Reliance on key person or skill-set? • Consistent styles and formatting?

36. Benefits of using standard SOA content Your Licensee provides standard SOA content which is: • Not an extra cost • Compliant – Corporations Law & Licensee standards • Consistent look and feel • Comprehensive - over 120 strategy templates • Reviewed & updated • Integrated with: • All other standard SOA templates • AdviserCentral & EasyEdit • Word features such as Document Map

37. Tips from SOA Training Don’t • Don’t customise Licensee compliance templates (e.g. Disclosure) • Don’t customise SOA templates without: • Processes for creation & maintenance • Monitoring changes the Licensee makes • Costing the time involved • Assessing benefits vs costs & risks (per template) Do • Do use standard SOA templates exclusively (as much as possible) • Do provide us with: • Feedback on the standard SOA templates • Suggestions for new SOA templates

38. AdviserCentralRelease 6 Update

39. What has been done since Release 5? AdviserCentral Interface • keeps you up to date with AC news VisiPlan Hotfix • VisiTools • VisiSnapShot Plus • Report Manager Via AC Update • Enhanced SOA templates • Report Writer enhancements

40. SuperSolver SuperSolver • Compare super products • Product data now available • Use for replacement advice Benefits • Easy to use • Saves time • SOA template available • Graphs & simple projections

41. Risk Researcher More product selection criteria Comprehensive risk ranking • Qualitative provisions • Premium now • Insurer strength • Premium indicators • Policy series history • Quality of Service

42. Other enhancements VisiModelPlan • Rollback pension to super at specified date • First Home Saver account • Investment loans for Superfund entity VisiSnapShot Plus • First Home Saver account • Gearing in super VisiTools • Transition to retirement • Gearing in super Business Process Maps now easier to use

43. Summary

44. What we have talked about • The Enhanced SOA • SOA formatting & styles • Non-standard SOA content • AdviserCentral Release 6

45. Thank you & Questions Feedback Statement of Advice: SOA_Centre@mlc.com.au AdviserCentral: AdviserCentral@mlc.com.au Support AdviserCentral software support: call 134360(option 1,1) or Systems_Support@threesixty.com.au