Statement of No Advice

We’ve been shocked by how many people tell us their financial advisor asked them to sign a “Statement of No Advice”. At first glance, it might sound harmless. But the reality is far more concerning, and could leave you without protection if something goes wrong.

What Is a "Statement of No Advice"?

A “Statement of No Advice” is a legal document that essentially says the financial advisor is not giving you any personal advice. Once you sign it, you're acknowledging that:

• They haven’t considered your personal circumstances

• They’re not responsible for the outcome of your investment decisions

• You won’t receive a formal Statement of Advice (SoA), which is legally required for personalised financial advice

In short, you're on your own.

Why Would an Advisor Ask You to Sign One?

Here’s what it often means in practice:

1. Avoiding Responsibility

If no advice was given, the advisor can’t be held accountable if things go wrong. That’s a major red flag.

2. Hiding Commissions and Conflicts

Without formal advice, the advisor doesn’t have to disclose how much they’re being paid—or by whom. Often, they’re getting a commission from the product provider (not you), which creates a huge conflict of interest.

3. Skipping the Proper Process

Real advice starts with a deep understanding of your needs. That includes collecting information about your goals, income, assets, and risk appetite. No Statement of Advice means no documented plan, no projections, no clarity.

4. The "Free Advice" Trap

Some advisors say, “We don’t need to charge you if you sign this.” Sounds generous? It’s not. They’re getting paid, just not by you. They're incentivised to push products that pay them the most, not those that are best for you.

If You’ve Signed One, You May Still Have Rights

Even if you signed a Statement of No Advice, you may still have legal remedies, especially if the advisor gave you any form of recommendation or opinion.

ASIC and the courts often look at what was said and done, not just what was written on a form.

Your Experience Matters

Have you been pressured to sign a Statement of No Advice? Were you misled by an advisor claiming their service was “free”? We'd love to hear your story.

Leave a comment below or email us confidentially.

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Disclaimer:

The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.