ASIC has issued Consultation Paper 329 Implementing the Royal Commission recommendations: Advice fee consents and independence disclosure (CP 329).

CP 329 seeks feedback on:

• draft legislative instruments that deal with advice fee consents and independence disclosure; and
• a proposal to issue more guidance in Regulatory Guide 245 Fee Disclosure Statements (RG 245) to help industry meet obligations around ongoing fee arrangements, including renewal notices and fee disclosure statements.

The Financial Services Royal Commission final report made a number of recommendations to address consumer harm resulting from fees for no service, superannuation balance erosion through inappropriate advice fees and poor advice from financial advisers whose duty to their client conflicts with their own interests.

ASIC’s draft legislative instruments are based on the government’s exposure draft legislation for reforms in response to the royal commission.

The final form of these instruments is subject to change depending on the form of the enabling legislation, and the feedback received in response to CP 329. The instruments will not commence until the legislation takes effect.

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