ASIC opens ongoing fee consent window | Australian Markets
The Australian Securities and Investments Commission (ASIC) has supplied a regulatory window round fee consent preparations with respect to superannuation funds.
The regulator stated on Friday that it’s granting a restricted no-action place in response to a particular difficulty raised by the advice industry in regards to the inclusion of account numbers in a shopper’s written written consent for the deduction, or association of the deduction or arranging of the deduction for ongoing advice charges.
The official ASIC notification of its no-action place said:
ASIC doesn’t intend to take motion for a breach of part 962S of the Corporations Act 2001 (Corporations Act) and part 99FA of the Superannuation Industry (Supervision) Act 1993 the place:
- written consent was given by a shopper below part 962S of the Corporations Act for the fee recipient to deduct or prepare to deduct charges below an OFA from 10 January 2025 till 5 September 2025
- an account quantity was not included within the consent, and
- within the case of superannuation, a trustee deducted from the related member’s account the advice charges as set out within the consent.
ASIC cautioned, nevertheless, that counting on the no-action place didn’t stop an ongoing fee association terminating below the laws the place a written consent just isn’t compliance as a result of it doesn’t embrace the account quantity.
“In order to depend on this no-action place, the Australian financial providers licensee or consultant (i.e. fee recipient) should enter into a new OFA with the shopper and search a new written consent for the fee recipient to deduct or prepare to deduct ongoing charges, together with to cowl the period the place any charges had been deducted below 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,” the ASIC announcement stated.
It stated superannuation trustees ought to review their processes for the oversight of advice fee deductions and be certain that any written consents adjust to the Corporations Act necessities.
“This no-action position does not prevent third parties from taking legal action in relation to the conduct.”
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