When Is a Statement of Advice (SOA) Required

question 12

Multiple Choice

When is a statement of advice (SOA) required?

• A) A financial planner must provide the client with a SOA at the same time as, or as soon as practicable after, the advice is provided.
• B) A financial planner must provide the client with a statement of advice SOA within 21 days after, the advice is provided.
• C) A financial planner is not under an obligation to provide written advice to the client.
• D) None of the above.

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Definitions:

Process Manufacturers

Companies involved in production where raw materials are transformed through a chemical or mechanical process into a finished product.

Continuous Flow

A process in manufacturing that involves the constant movement of goods through the production system without any stoppages.

Product Costs

Costs incurred by a business to manufacture a product or acquire products for resale, including material, labor, and overhead.

Direct Materials

Raw materials that can be directly identified and easily traced to the manufacturing of finished goods.