The Australian Securities & Investments Commission (Asic) has issued a consultation paper aiming to give clients consent on how fees are deducted and disclosed.
It has based the potential changes on the recommendations made in the Hayne report following the Royal Commission into banking, superannuation and financial services.
The report suggested requirements for:
- Written consent to deduct, or to arrange to deduct, fees from a client account as part of an ongoing fee arrangement;
- Written consent to deduct fees from a superannuation account under an arrangement that is not an ongoing fee arrangement; and,
- Written statement that discloses advice providers’ lack of independence.
Meeting the deadline
The paper also delves into issues surrounding ongoing fee arrangements, including renewal notices and disclosure statements.
“The government proposes to introduce legislation implementing the Royal Commission recommendations from 1 July 2020,” said Asic commissioner Danielle Press.
“We are consulting on our proposals now to help provide certainty to industry as it prepares for the new requirements.
“Asic welcomes views not only from industry but from all interested stakeholders. This will help us understand any concerns that consumers, firms and trustees may have about our proposals.”
The regulator will close the public consultation on 7 April 2020 in order to meet the deadline set by the Australian government.
