Disclaimer

These tips are provided on the basis that you confirm each tip with your licensee before proceeding with producing documents for your files. 
By reading the below tips, you confirm that acknowledge the general nature of this information.

General Financial Planning File Note Tips

  • Complete a File Checklist for each new client file that you produce.
  • Keep your client file physically and/or electronically, with SoA documents held electronically.
  • A new client file must be produced for each client you meet, even if they don't proceed with your recommendations. If the partner of your client signs the same Fact Find as the client, you may add them in the same client file.
  • Check with your licensee regarding how to store, keep secure and archive your client files

Content & Format of Files

The client file must contain originals or copies of the following documents:
  • Working papers relating to advice
  • All correspondence received from the client
  • All correspondence sent to the client
  • All correspondence to or from third parties relating to the client
  • File Notes
  • Fact Finds or equivalent documents
  • Client acknowledgements, Declarations and Authorities
  • All advice documents including the initial and subsequent Statements of Advice (SOAs) and all attachments
  • All Records of Advice (ROAs)
  • Progress/Review Reports and all attachments
  • Any other correspondence and all attachments
  • Copies of completed application/proposal forms
  • Copies of client cheques and/or money orders
  • Photocopies of client documents obtained prior to and during the advice process (for example, copies of investment certificates, insurance policies, superannuation statements and documents evidencing any client identification process under Anti-Money Laundering/Counter Terrorism Financing legislation 
  • Original documentation (such as Trust Deeds and Tax Returns) provided by the client or their agent must not be retained on the client file and must therefore be copied and returned back to them.
  • As a matter of best practice, segmentation of client files is recommended as this makes it easier to quickly access specific information.
Advisers must use a file note to record the substance of any conversation with a client at the time of the conversation or in any event on the same day. Good file notes are invaluable in the event of a client complaint and are essential to enable third parties such as ASIC and external complaints resolution schemes to understand the reasons for your recommendations and any subsequent transactions.

Details Required

File notes must include the following details:
  • Client Name
  • Adviser/staff member's name present at the client contact
  • Date of conversation
  • Whether this was via telephone or a face to face meeting
  • Subject of the conversation
  • Outline of the discussion
  • Outstanding Action (if applicable)
  • Signature (as a matter of best practice)
Please Note: File Notes are not required where client conversations are fully recorded and stored electronically as audio files or are converted to text. Advisers must however obtain the client’s prior consent to have their conversation recorded. Consent can be verbal however this must be noted on the client file by way of a file note.

Retention of Client Files

The entire content of client files (including all advice documents) must be retained for 7 years from the latest amendment or endorsement to a file. This will usually be 7 years from the date of the last contact or correspondence.

Electronic Files

Advisers must have a documented Electronic Files Process detailing the following:
  • How documents are scanned or placed into an electronic system;
  • What checks and systems are in place to ensure that electronic documents are not altered or tampered with. Please note some electronic filing systems provide an audit trail of documents that have been altered and have the capability of assigning the right to alter documents to one person only. 
  • An appropriate back up and disaster recovery procedure. Please note that all back up data must be stored securely and available for viewing for 7 years on 24 hour notice; and
  • How documents are to be disposed of and/or archived.
Please note: SOAs should also be held electronically.

Archiving Client Files

Documents that must be retained in the current file for at least one year prior to archiving are:
  • Copies of any advice related documents including portfolio reviews, client reviews and associated SOAs, SOAAs and ROAs together with all attachments; and,
  • File notes.
Please note: As best practice, all archived documents should be able to be retrieved/produced within 48 hours.

Loss of client files

Advisers must notify their licensee in writing immediately a client file or file document is lost.

The adviser must then reconstruct as near as possible the lost file/document by undertaking the following procedures in relation to documents that were retained on the client file:
  1. Re-document contact dates and client discussions (where possible) using the adviser's diary;
  2. Copies of SOAs, SOAAs and ROAs containing recommendations held electronically must be printed off and placed on the client file;
  3. Where possible copies of application forms/proposals and other relevant documents should be obtained from the relevant product issuer or platform provider;
  4. Print off any other documentation stored electronically; and,
  5. Ask the client for another copy of documents previously provided by them.

At the first available opportunity (or in any event prior to providing additional advice and services) the client must complete a new Client Profile/Fact Find. A file note explaining that the file is a reconstruction and the date of reconstruction must be inserted at the front of the file. If a file or document is stolen, the adviser must report this to their Licensee who will provide the adviser with further instructions.
Further Information

Regulations 
RG 175 Financial Product advisers – Conduct and Disclosure
RG 36 Licensing: Financial Product Advice and Dealing
Financial Planning Association
FPA Rules and Guidance Notes – particularly Guidance Note #4