{"id":677,"date":"2015-08-24T13:42:06","date_gmt":"2015-08-24T04:12:06","guid":{"rendered":"https:\/\/fwgs.net.au\/?p=677"},"modified":"2015-08-24T13:42:06","modified_gmt":"2015-08-24T04:12:06","slug":"documents-part-12-file-note","status":"publish","type":"post","link":"https:\/\/fwgs.net.au\/documents-part-12-file-note\/","title":{"rendered":"The Documents Part 12 &#8211; The File Note"},"content":{"rendered":"<p>A file note is a record of an adviser\u2019s conversation with a client.<\/p>\n<p>Risk management is an essential element of good business practice.\u00a0\u00a0 For authorised representatives maintaining a clear and up to date paper trail is critical to manage risk. Auditors that I come into contact with bemoan the poor quality of files notes and grieve that in many cases file note are non-existent.<\/p>\n<h3><strong>What is a file note?<\/strong><\/h3>\n<p>Files notes are used to supplement a client\u2019s file with details of the interaction and are a critical component of demonstrating compliance during the advice process and any ongoing conduct. Good file notes can keep you out of jail.<\/p>\n<p><em><strong>If you are questioned by a cross-examiner, they will ask you to recall things and if you have documents that you prepared at the time of the conversation, obviously they\u2019re going to be more credible.<\/strong><\/em><\/p>\n<h3><strong>What makes a good file note? <\/strong><\/h3>\n<p>Effective file notes are characterised by four key features, namely being:<\/p>\n<p>Clear:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 they must be able to be read and understood by a third party<\/p>\n<p>Comprehensive:\u00a0\u00a0\u00a0\u00a0\u00a0 all critical points must be covered in sufficient depth<\/p>\n<p>Current:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0taken during or soon after the client meeting with all aspects covered<\/p>\n<p>Concise:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 contains all relevant information and detail<\/p>\n<h3><strong>What should file notes include?<\/strong><\/h3>\n<ul>\n<li>Date of the discussion<\/li>\n<li>Who was involved<\/li>\n<li>The reason for the contact between client and the adviser<\/li>\n<li>Objectives and issues raised<\/li>\n<li>An outline of the discussion, without repetition of information captured by other tools (like a fact find)<\/li>\n<li>All decisions made or agreements reached<\/li>\n<li>Links to the fact find and any advice provided (providing background information &amp; the client\u2019s wishes)<\/li>\n<li>The \u2018tone\u2019 of the discussions \u2014 friendly, cautious, worried, tense, etc.<\/li>\n<li>Next steps or actions required<\/li>\n<li>All records being signed and dated.<\/li>\n<\/ul>\n<p>Authorised representatives of fwgs will have access to the Portal which pre-populates relevant file notes with additional free fields to capture the points mentioned above.<\/p>\n<h3><strong>Final Tips<\/strong><\/h3>\n<p>It is no exaggeration to say that file notes could be the difference between the ability to continue practicing or not. File notes are less about facts which are contained in a Needs Analysis or a Statement of Advice and more about an advisers suggestions and the client\u2019s responses. This is particularly important if a client changes their mind during a meeting. ASIC has an expectation that working papers and notes are contained in every client file and it will be very difficult to an authorised representative to protect themselves if a complaint arises and file notes are absent.<\/p>\n<h5>Other articles in this series:<\/h5>\n<ul>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-1-introduction\/\">The Documents Part 1 &#8211; Introduction<\/a><\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-2-financial-services-guide-fsg\/\">The Documents Part 2 &#8211; Financial Services Guide (FSG<\/a>)<\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-3-needs-analysis-introduction\/\">The Documents Part 3 &#8211; Needs Analysis (Introduction)<\/a><\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-4-needs-analysis-safe-harbour-port-1\/\">The Documents Part 4 &#8211; Needs Analysis (Safe Harbour Port 1)<\/a><\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-5-needs-analysis-safe-harbour-port-2\/\">The Documents Part 5 &#8211; Needs Analysis (Safe Harbour Port 2)<\/a><\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-6-needs-analysis-safe-harbour-port-3\/\">The Documents Part 6 &#8211; Needs Analysis (Safe Harbour Port 3)<\/a><\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-7-needs-analysis-conclusion\/\">The Documents Part 7 &#8211; Needs Analysis (Conclusion)<\/a><\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-8-statement-of-advice-soa\/\">The Documents Part 8 &#8211; Statement of Advice (SoA)<\/a><\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-9-soa-safe-harbour-port-5\/\">The Documents Part 9 &#8211; SoA (Safe Harbour Port 5)<\/a><\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-10-soa-safe-harbour-port-6\/\">The Documents Part 10 &#8211; SoA (Safe Harbour Port 6)<\/a><\/li>\n<li><a href=\"https:\/\/fwgs.net.au\/the-documents-part-11-soa-safe-harbour-port-7\/\">The Documents Part 11 &#8211; SoA (Safe Harbour Port 7)<\/a><\/li>\n<\/ul>\n<p><a href=\"https:\/\/fwgs.net.au\/register-your-interest\/\">Register your interest<\/a> in becoming a finance wise Limited Authorised Representative (LAR)<\/p>\n<p><strong>If you\u00a0found this article interesting, why not<\/strong><\/p>\n<ul>\n<li>SEND it to a friend from the sidebar<\/li>\n<li>LEAVE A COMMENT by clicking on the icon at the top of the article<\/li>\n<li>Send\u00a0FEEDBACK directly\u00a0to\u00a0us at info@wordpress-784484-2675404.cloudwaysapps.com<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>A file note is a record of an adviser\u2019s conversation with a client. Risk management is an essential element of good business practice.\u00a0\u00a0 For authorised representatives maintaining a clear and up to date paper trail is critical to manage risk. Auditors that I come into contact with bemoan the poor quality of files notes and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":679,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,14],"tags":[12],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Documents - after the accounting exemption expires<\/title>\n<meta name=\"description\" content=\"finance wise. 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