What does a Paraplanner require to prepare a statement of advice for an Limited Recourse Borrowing Arrangement (LRBA)

A paraplanner preparing a Statement of Advice (SOA) for a Limited Recourse Borrowing Arrangement (LRBA) will require several pieces of information. The information required will vary depending on the specific circumstances of the client and the LRBA they are seeking advice on. However, here are some common pieces of information that a paraplanner might need:

1. Details of the client: This includes their name, age, employment status, income, assets, liabilities, and financial goals.
2. Details of the LRBA: This includes the type of asset being acquired (e.g., property, shares), the amount being borrowed, the loan term, the interest rate, the loan-to-value ratio, and any other relevant details.
3. Cash flow analysis: The paraplanner will need to understand the client's cash flow, including their income, expenses, and any other financial commitments, to ensure that they can service the loan.
4. Risks and benefits: The paraplanner will need to analyze the risks and benefits of the LRBA, including the potential for capital growth, income generation, and tax implications, to determine whether the LRBA is suitable for the client's financial goals and risk tolerance.
5. Compliance requirements: The paraplanner will need to ensure that the SOA complies with all legal and regulatory requirements, including those set out by the Australian Securities and Investments Commission (ASIC).
6. Investment strategy: The paraplanner will need to assess the client's investment strategy, including their risk profile and investment objectives, to ensure that the LRBA fits within their broader investment portfolio.

Overall, the paraplanner will need to gather a range of information about the client, the LRBA, and the broader financial context to prepare a comprehensive and tailored SOA.