ASIC has announced that it has granted a limited no-action position from client consent requirements when financial advisers and superannuation trustees enter into ongoing fee arrangements.
The no action position is in response to the failure to include account numbers in a client’s written consent for the deduction, or arranging of the deduction, of ongoing advice fees. Background.
Financial advisers and superannuation trustees must comply with client consent requirements when entering into ongoing fee arrangements (OFAs).
ASIC says it does not intend to take action for a breach of section 962S of the Corporations Act 2001 and section 99FA of the Superannuation Industry (Supervision) Act 1993 where:
- written consent was given by a client under section 962S of the Corporations Act for the fee recipient to deduct or arrange to deduct fees under an OFA from 10 January 2025 until 5 September 2025;
- an account number was not included in the consent; and
- in the case of superannuation, a trustee deducted from the relevant member’s account the advice fees as set out in the consent.’
In order to rely on this no-action position, the fee recipient must enter into a new OFA with the client and seek a new written consent for the fee recipient to deduct or arrange to deduct ongoing fees, including to cover the period where any fees were deducted under a non-compliant written consent.
The revised OFA must comply with all the requirements in section 962T of the Corporations Act. If this is not in place by 5 September 2025, the fee recipient must take steps to stop receiving fees.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
