Regulator releases fee consent legislative instrument

In a statement, ASIC said it had taken into account industry feedback in making the legislative instruments and considered that they struck "an appropriate balance between minimising regulatory burden for the financial advice and superannuation industries and ensuring that consumers receive the information that is relevant to them".

The regulator said it had also published examples of written consent forms and would write to super trustees around their new obligations.

The new rules would come into effect from 1 July 2021 and include the ability for consumers to give digital as well as written consent to deduct ongoing fees.

For existing customers, new fee arrangements would begin on the anniversary day of the previous ongoing fee arrangement. For new customers, fee arrangements would begin on "a day that is no more than 30 days after the fee recipient gives the account holder all the information require[d] to be included in a written consent", according to the legislative instrument.

"If the amount of an ongoing fee the account holder will pay during the upcoming year cannot be determined — a reasonable estimate of the amount of the ongoing fees the account holder will pay during the upcoming year and an explanation of the method used to work out the estimate" may be provided, ASIC said.

Want more content on advice strategy? Register now for ifa's Business Strategy Day 2021.