Don’t let EOFY chaos compromise compliance. MIntegrity Co-Founder Amanda Mark explains how financial advisors can elevate client service and strategic advice while navigating end-of-year requirements in this article from The Insider Adviser.

Also see Preparation key to staying compliant in the EOFY rush in the Independent Financial Adviser for more commentary by Amanda Mark.

The end of the financial year is here. For many it is a flurry of activity and last-minute scrambling. For financial advisers, this is the time to shine. This is the moment where the strategic foresight and proactive client service can really make a difference to the future financial wellbeing of clients. But in this rush, compliance can never take a back seat.

Every June it is the same. The well-prepared advisers glide through the period, strengthening client relationships and their businesses. Being reactive, however, leads to a month of chasing documents, correcting errors, and managing client anxieties. The difference is almost always in the preparation.

So, with the 30 June deadline looming, here are five practical steps, keeping an eye on compliance, to navigate this critical period successfully.

1. Master the message: proactive and early client communication is non-negotiable

The single biggest mistake an adviser can make is leaving communication too late. By early June, your clients should already know what, if anything, they need to do. A last-minute email on 25 June about a super contribution is not advice; it is a recipe for stress and potential errors.

Your communication strategy should be segmented. Not every client needs an urgent pre-30 June action. Categorise your priority list to include:

• Action required: These are clients who can benefit from specific strategies like maximising super contributions, realising capital gains or losses, or prepaying investment-loan interest. Contact them directly and personally.
• Review and confirm: Clients whose strategies are on track but who may benefit from a simple confirmation or a review of their position. A well-crafted and personalised email can suffice.
• No action needed: Let them know they are on track and no specific EOFY action is required. This builds confidence and demonstrates their affairs are being actively managed, even when no actions are required.

Starting this process early gives you breathing room to book meetings, prepare documentation, and for clients to arrange their finances without feeling pressured.

2. Superannuation strategies: document everything

Superannuation is the low-hanging fruit of EOFY advice, but it is riddled with compliance traps. Whether it is maximising concessional (pre-tax) contributions using the carry-forward rules or making non-concessional (after-tax) contributions, the advice needs to be rock-solid, specific to the clients’ circumstances and documented.

Before you pick up the phone to suggest a last-minute contribution, ask yourself: why this is appropriate for the client, is this part of their existing strategy, what records to I need to keep? This is where a Record of Advice (ROA) or, if the strategy is new or significantly different, a Statement of Advice (SOA), becomes critical.

An email saying, “You should top-up your super,” is not enough. Your advice document must clearly outline the contribution type, the amount, the source of funds, and how it aligns with the client’s goals and financial situation. It must also include the necessary warnings and disclaimers. Remember, the regulator does not care about your intent; it cares about the best-interest duty you have to clients and the evidence recorded on the client file.

3. The retirement runway: guiding pre-retirees with precision

For clients approaching retirement, this EOFY is particularly significant. Your advice can profoundly impact their transition out of the workforce. Key considerations include:

• Maximising final contributions: This is their last chance to use higher contribution caps before moving to the retirement phase.
• Transition to Retirement (TTR) strategies: Reviewing the effectiveness of existing TTR strategies and ensuring they remain appropriate.

These are complex strategies. SOAs must enable clients to make informed decisions. The client must understand the advice, the basis for it, and all associated risks, costs, and benefits.

4. Fee-for-service hygiene: reconcile, record and report

The scrutiny on fees is unrelenting, and for good reason. Conduct a thorough audit of any fee-paying clients. Ask the simple question: have we delivered the services for which we have charged?

Go through each client’s ongoing fee agreements. If these include a portfolio review, investment monitoring, and an annual strategy meeting, ensure these services have been provided and that there is evidence of file notes, meeting minutes, review reports. If a service was not delivered, fees cannot be charged.

5. Finalise the paper trail: The EOFY admin tidy-up

While staying busy with client-facing work, do not neglect the necessary record-keeping requirements. As advice is implemented, ensure all necessary documentation is finalised and filed correctly.

• Client records: Prepare to provide clients with the necessary summaries to complete their tax returns. Ensure client data is current and all files are available for reporting.
• Finalise SOAs and ROAs: Ensure any advice provided during the EOFY rush is properly documented and the files are closed-off.
• Review your own processes: What worked well this EOFY period? What caused bottlenecks? Use the experience as a real-time learning opportunity to refine your processes for next year.

If advisers embrace a structured and compliant approach they can avoid the June scramble and enter the new financial year with greater confidence and integrity.

Amanda Mark is co-CEO of financial services regulatory risk consultancy MIntegrity

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