DBFO Reforms in Financial Planning

1. DBFO Reforms in Financial Planning brokerssupport.com.au/blog/dbfo-reforms-financial-planning-consent/ September 23, 2025 DBFO Reforms in Practice: Updating SOAs/ROAs and FDS/Consent Workflows Aagam Shah Paraplanning September 23, 2025 DBFO Reforms in Practice: Updating SOAs/ROAs and FDS/Consent Workflows The financial advice profession in Australia is standing at a new crossroad. With the DBFO reforms in financial planning, practices are being called to rethink how they manage advice documents, client fees, and consent processes. While these changes can feel like just another compliance exercise, the reality is that they open doors to cleaner systems, stronger client engagement, and more efficient ways of working. For many advice firms, the reforms also highlight the value of outsourcing paraplanning services to manage the extra workload around SOA and ROA preparation without overwhelming internal teams. 1/6

2. This blog unpacks what the reforms mean in practice, with a focus on SOA updates, ROAs, Fee Disclosure Statements (FDS), and consent workflows. Key takeaways: DBFO reforms simplify advice and boost client transparency. Clearer SOA updates help clients understand value better. Strong consent management systems are now essential. Firms can ease workload with paraplanning outsourced. Partnering with an outsourced paraplanning expert builds compliance and trust. Why the DBFO Reforms Matter The financial planning reform agenda under DBFO isn’t just about ticking regulatory boxes. It’s about reducing red tape while improving transparency and trust between advisers and clients. According to a recent report by Money Management, Minister Jones outlined that the second tranche of the DBFO reforms could help reduce the cost of providing financial advice by up to 40%, a shift aimed at making advice more accessible and affordable. Historically, advisers have struggled with overlapping rules, excessive paperwork, and repetitive disclosure obligations. Clients, in turn, often felt buried under documents they didn’t fully understand. The reforms are aimed at resolving this by: Simplifying advice documentation. Creating clear frameworks for ongoing service agreements. Reducing duplication in reporting and compliance. Putting client preferences and consent at the centre. 2/6

3. For practices, the challenge is straightforward: update your workflows now or risk falling behind when compliance audits come knocking. Shifting the Focus on Advice Documentation 1. Statements of Advice (SOAs) One of the first areas impacted by DBFO is SOA updates. Previously, Statements of Advice often turned into bulky, jargon-heavy documents. The reforms push practices to deliver advice that is not just compliant, but also understandable and meaningful for clients. What this means in practice: Shorter, clearer SOAs with a focus on outcomes rather than technical overload. Smarter integration with digital tools to prepare and present SOAs. More reliance on technology and paraplanning support to reduce production time. 2. Records of Advice (ROAs) ROAs, too, are being reshaped under the new landscape. Advisers can use them more effectively for ongoing advice, provided the client situation hasn’t significantly changed. Practical considerations: Ensuring ROAs are backed by clear internal processes. Using technology to store and retrieve ROAs efficiently. Avoiding duplication by linking ROAs to past SOAs, creating a smoother client experience. Fee Disclosure Statements and Consent Workflows 1. Fee Disclosure Statements (FDS) The new financial planning reform standards require more than just sending out templated annual disclosures. Advisers now need to present FDS in a way that directly ties services delivered to the fees charged. Clients should see value in what they’ve paid for. Practices should align FDS with ongoing service agreements. Automation can play a big role in generating FDS on time without heavy admin burden. 2. Consent Workflows Perhaps the most significant operational shift comes from client consent. Advisers must have watertight systems to obtain, record, and renew client consent. This is where a consent management platform or consent management system becomes crucial. 3/6

4. But beyond technology, it’s about client confidence: Clients want transparency over what they’re agreeing to. They want the ability to update preferences easily. They expect processes that are clear, fast, and secure. For many firms, adopting consent and preference management tools is no longer optional, it’s the only way to stay compliant while keeping operations efficient. The Role of Technology in Compliance Technology is the silent driver behind DBFO success. Without the right systems, keeping track of SOAs, ROAs, FDS, and consent can quickly turn into an administrative nightmare. Consent Management Solutions Platforms built for consent management solutions now allow advisers to: Capture client consent digitally and securely. Automate reminders for consent renewal. Provide clients with portals to update their preferences anytime. Integrate consent records directly with advice and CRM systems. In parallel, document automation tools are making SOA updates and FDS generation faster and less prone to human error. Practices that embed these systems are more likely to thrive under the reforms, while those relying on manual processes may find themselves overwhelmed. Practical Workflow Adjustments So, what should practices actually do? Here are some practical steps: 1. Map your advice process end-to-end. Identify where SOAs, ROAs, FDS, and consent sit in the client journey, and where reforms require updates. 2. Invest in technology. Whether it’s a consent management platform, document automation tool, or practice management software, technology reduces compliance risk while saving time. 3. Train your team. Staff need to understand both the technical aspects of reforms and how to explain them to clients in simple language. 4. Communicate with clients early. Reassure them that reforms are designed to protect their interests and improve service quality. 5. Leverage outsourced support. 4/6

5. Paraplanning, compliance checks, and admin tasks can be delegated so advisers can focus on client relationships. Some practices are now opting to have certain compliance and documentation tasks paraplanning outsourced, freeing up advisers to focus on client conversations while maintaining efficiency under the new rules. Challenges and How to Overcome Them Even with the right intentions, firms may hit roadblocks. Some common challenges include: Administrative overload: Trying to manage reforms manually. System gaps: Legacy systems that don’t integrate consent or document workflows. Client confusion: Clients may not understand new consent requirements or changes in documents. Solutions often lie in combining consent management solutions with better communication. Explain changes in plain English, and give clients access to digital systems that make the process painless. As mentioned in a Money Management article, Assistant Treasurer Daniel Mulino has emphasised that progressing the second tranche of DBFO reforms remains a priority, underlining the government’s commitment to simplifying financial advice regulation and ensuring timely implementation. Building for the Future The DBFO reforms aren’t a one-off compliance hurdle; they represent the future of advice delivery. Firms that update their processes now will: Build stronger client trust through transparency. Reduce compliance risks. Operate more efficiently with integrated systems. Be better prepared for any further financial planning reform down the line. Think of it this way: reforms force you to refine your house, but the end result is a stronger foundation for growth. Conclusion The DBFO reforms in financial planning are reshaping how advisers approach documentation and client consent. Updating SOA updates, ROAs, FDS, and workflows isn’t just about compliance, it’s about building a more client-focused, transparent, and efficient practice. 5/6

6. Firms that invest in the right consent management platform or consent management system, integrate consent and preference management into their workflows, and adopt robust consent management solutions will find themselves not only compliant but also more trusted and future-ready. Whether through adopting smarter technology or engaging an paraplanning outsourced expert, the key is to view DBFO not as a hurdle but as an opportunity to build stronger, more efficient client-focused advice models. Change may feel daunting, but with the right mindset and systems, the DBFO reforms can become less of a burden and more of a springboard for better client relationships and smarter financial advice. Aagam Shah Aagam Shah is a visionary leader and Chartered Accountant with a passion for driving organizational success through strategic financial management. As the CEO of NCS Global, Aagam brings a wealth of experience in overseeing operations, fostering growth initiatives, and maintaining a commitment to excellence in client service. His leadership is characterized by a strong focus on innovation and efficiency, ensuring that NCS Global remains at the forefront of the outsourcing industry. See Full Bio © Copyright 2025. All rights reserved. Designed by NCS Corp Pty Ltd. 6/6