The short version: section 9(1) of the General Code of Conduct requires a provider to keep a record of the advice given to a client that reflects the basis on which the advice was given, and in particular four things. A free Word template built to those four things and to the structure below is further down this page, no sign-up.
A brief summary of the client's circumstances, objectives, financial position, existing products and risk profile, as gathered under the section 8 suitability analysis.
Not only the one recommended: the record must show that alternatives were looked at.
An explanation of why it is likely to satisfy the client's identified needs and objectives. The heart of the record, and the part most often written too thinly.
Where a product replaces another: the actual and potential financial implications, costs and consequences of the replacement, as section 8(1)(d) requires.
The record must also be given to the client in writing, and records must be kept for at least five years. Those two duties are what turn a good meeting into a defensible file.
Record of Advice vs needs analysis vs Statement of Advice
Three names for documents that are often mixed up, and one of them is not South African.
| Document | Where the rule is | What it is |
|---|---|---|
| Financial needs analysis (FNA) | FAIS General Code of Conduct, section 8 | The work: gathering the client's information, analysing it and identifying the products that are suitable. If the client limits the information or the analysis, that limit and its risks must be disclosed. |
| Record of Advice (RoA) | FAIS General Code of Conduct, section 9 | The record of what was advised and why, on the basis of that analysis. The client receives a copy in writing, and it is kept for at least five years. |
| Statement of Advice (SoA) | Australia: the Corporations Act and ASIC guidance | The Australian advice document for personal advice to a retail client. In Australia a "Record of Advice" is a shorter record allowed in a few defined cases, mainly further advice when the client's circumstances have not significantly changed. |
If you arrived from Australian material: South Africa has no Statement of Advice. Under FAIS the Record of Advice is the record of the advice given, at a first meeting or a review, and section 9 says what it must reflect.
What the minimum leaves out
A record that only ticks the four items will pass a light-touch review and fail a hard one. Compliance officers and the FSCA look for evidence that the advice was suitable, not just that a form was completed. In practice a strong Record of Advice also shows:
- The engagement details. Date, time, place, who was present, and whether the advice followed a full or limited analysis. "Not recorded" is a finding waiting to happen.
- The quantified need. Life cover of R2 000 000 is not a recommendation until the record shows why R2 000 000: income replacement to the end of dependency, education, debt, estate costs, less what is already in place.
- The assumptions. Inflation, real return, drawdown rate, estate costs, tax. If a figure rests on an assumption, the assumption should be in a table the client can see.
- Fees and remuneration. Investment management charges, platform fees, advice fees (initial and ongoing) and commission on risk products, in rand and percentage terms, with the effective annual cost per product.
- Risks and disclosures discussed. Product risks, exclusions and waiting periods on risk cover, liquidity, and the consequences of not following the advice.
- The client's decision. What the client accepted, declined or deferred, in their own terms.
- Matters arising. Contradictions in the information supplied and what the adviser still needs to confirm. Recording open questions is a sign of diligence, not weakness.
A working structure
Most South African practices settle on a structure close to this, and the template on this page follows it. Tallify drafts in the practice's own layout and checks every draft for the section 9 items:
| Section | What goes in it |
|---|---|
| 1. Header and engagement | Client, adviser, FSP and licence number, date, time, place, persons present, record reference |
| 2. Client circumstances and objectives | Personal and family position, financial position, income and expenditure, objectives, risk profile |
| 3. Analysis performed | Needs summary: need, amount required, already provided, shortfall, priority |
| 4. Advice given and products | Per need: the products considered, the product recommended and why; products considered and not recommended |
| 5. Replacement comparison | Where a product is replaced: the old and new product side by side, and why replacing suits the client better than keeping or changing the existing one |
| 6. Fees, charges and remuneration | One row per cost component; the effective annual cost; the disclosure paragraph |
| 7. Risks and disclosures discussed | Product risks, exclusions, waiting periods, replacement consequences |
| 8. Client decision | Accepted, declined, deferred, with reasons |
| 9. Declarations and signatures | Adviser declaration; client acknowledgement of receipt |
| 10. Filing and matters arising | Where the record is kept, follow-ups, contradictions to resolve |
Common findings in reviews
- The recommended product is named but the reason it suits the client is a single generic sentence.
- No alternatives recorded, so the "products considered" requirement is unmet.
- Replacement business without the section 8(1)(d) comparison.
- Figures that appear from nowhere: a cover amount with no calculation behind it.
- Fee disclosure limited to "as per quotation".
- The record exists but there is no evidence the client received it.
- Versions overwritten, so the history of the advice is lost.
What the FAIS Ombud keeps finding
When a client complains, the Office of the FAIS Ombud reads the Record of Advice to decide whether the advice was suitable. The same weaknesses come up again and again in its reports and determinations:
The Ombud's annual report noted a growing trend of standard records filled with generic statements the client only ticks, such as a confirmation that all fees were disclosed. A client cannot be expected to confirm what was disclosed, and the Ombud said such records "fall short of compliance with the Code and detract from the financial planning process".
The Ombud treats the record as key evidence, and has held that a provider who did not keep one cannot hide behind a dispute of fact. In a matter reported in 2025 the policy wording was found clear, yet the adviser could not produce the record of advice after system migrations, and a settlement of R50 000 was recommended and accepted.
In a determination involving pensioners whose savings were moved into an investment far riskier than where they came from, there was no record explaining the considerations behind the recommendation. The complainants were awarded their capital plus interest.
A professional indemnity policy was replaced and the new one did not cover the period before it started, so the claim for misappropriated trust funds was refused. The provider had no record showing the section 8(1)(d) disclosure, and handing the client a proposal form to complete was not advice. The matter settled at R800 000, the Office's maximum at the time.
The regulator has made the same point about replacements. In FSCA Communication 46 of 2020 it warned that records of advice for replacement products, prepopulated by product providers and passed around the industry, contained factual errors about wording, fees, benefits and exclusions. The provider must check and correct that information, and may be held responsible for a client's loss if it does not.
The pattern is the same in every case: a record written for the client, with the reasons and the alternatives in it, is the provider's best evidence. A generic or missing one is the complainant's.
Checklist
Eleven points. A file that answers all of them will stand up to a compliance review and to the regulator.
- Engagement details complete, including who was present.
- Summary of the information the advice was based on.
- Every need quantified with the arithmetic visible.
- Assumptions in one table.
- Products considered listed; product recommended explained per need.
- Replacement comparison where applicable.
- Fees, charges and remuneration in rand and percentages, with EAC per product.
- Risks and disclosures recorded.
- Client decision recorded.
- Copy given to the client, with evidence.
- Filed with a reference, versioned, retained for at least five years.
How Tallify helps
Tallify starts where the record does: with the information the advice is based on. The practice sends the client a personal onboarding link. The client signs the disclosure letter online, completes the fact find and sends their ID and proof of address.
Code reads the facts from the fact find and removes the client's identity on the practice's server; Claude, Anthropic's model, reads the de-identified facts and drafts the Record of Advice and the supporting needs analysis in the practice's layout, with the arithmetic in tables, the assumptions stated, the fee and conflict disclosures, and a list of matters for the adviser to confirm.
Every figure that rests on an assumption is flagged for the adviser to review. The adviser receives the draft by email as a PDF, can edit it in the console, and files it; the signed version goes on a versioned register with the history kept for the regulator. Nothing is filed until the adviser approves it, and filing is refused while a flag is still open.
The documentation shows how a draft is built and what the adviser checks before filing.
This guide is a practical summary, not legal advice. Check the current text of the General Code of Conduct and your FSP's compliance manual.
Questions
Is a Record of Advice the same as a financial needs analysis?
No. The needs analysis (section 8) is the work: gathering information, analysing it and identifying suitable products. The Record of Advice (section 9) is the record of what was advised and why, based on that analysis. Practices usually keep both on file, and the record refers to the analysis.
What is the difference between a Record of Advice and a Statement of Advice?
Statement of Advice is an Australian term. In Australia the Corporations Act requires a Statement of Advice for personal advice to a retail client, and ASIC allows a shorter Record of Advice in a few defined cases, mainly further advice when the client's circumstances have not significantly changed. South Africa has no Statement of Advice: under FAIS the Record of Advice is the record of every piece of advice, and section 9 of the General Code of Conduct says what it must reflect.
Is there a free Record of Advice template?
Yes. This guide has a free, editable Word template built to section 9 of the FAIS General Code of Conduct, with a needs table, a replacement comparison, a fees and charges table and declarations. No sign-up. A template is a starting point: the FAIS Ombud has criticised generic records that are not written for the client, so fill every section for the person in front of you and check it against your FSP's compliance manual.
Does the client have to receive a copy?
Yes. The Code requires the provider to give the client a copy of the record in writing. Many practices have the client sign it as well, which is good practice rather than a requirement.
What happens if a Record of Advice is incomplete or missing?
In a complaint the FAIS Ombud reads the record to decide whether the advice was suitable. A provider who cannot produce one, or whose record does not show the basis for the advice, is generally unable to rebut the client's version, and settlements have been recommended on that ground. An incomplete record is also a finding in a compliance review or an FSCA inspection.
How long must a Record of Advice be kept?
At least five years. The FAIS Act and the Code require records to be kept for a minimum of five years from the date of the advice or the termination of the product, and a practice's own retention policy may be longer.
Can software draft a Record of Advice?
Yes, as a draft. Tallify drafts a Record of Advice and needs analysis from the fact find the client completes through the practice's onboarding link, structured to the Code, with every assumption stated and every figure that rests on one flagged for review. The adviser remains responsible for the content and signs the final document.
Sources and further reading
- General Code of Conduct for Authorised Financial Services Providers and Representatives (Board Notice 80 of 2003, as amended), sections 8 and 9, via the FSCA
- Financial Advisory and Intermediary Services Act 37 of 2002, section 18 (record keeping)
- FSCA Communication 46 of 2020 (FAIS): Prepopulated Records of Advice, 18 August 2020, via Moonstone
- Office of the FAIS Ombud: determinations and annual reports
- FAIS Ombud annual report highlights the need for TCF (the 2019/2020 report on tick-box records), Moonstone, 7 December 2020
- Client advice records: are you still following a tick box approach?, Moonstone, 25 January 2021
- Is the Ombud system fair? (the record of advice as evidence and the dispute of fact), Moonstone, 3 September 2012
- FSP pays R50 000 settlement because of missing record of advice, Moonstone, 31 March 2025
- Brokers stumble at the usual hurdles, FA News, 19 January 2021
- FAIS Ombud highlights FSPs' obligations when a policy is replaced, Moonstone, 14 December 2023
- Legal significance of keeping a record of advice for financial service providers, Adams & Adams, 16 April 2024, via Mondaq
- FAQs: Records of Advice (ROAs), ASIC Information Sheet 266 (Australia)
- How Tallify drafts and files the Record of Advice
- Reviewing a draft before it is filed