Summary

ASIC has granted a limited no-action position for licensees that have entered into an ongoing fee arrangement (OFA) with clients between 10 January 2025 to 5 September 2025 where an account number was not included in the consent form.

Background Information

On 10^th January 2025, ASIC implemented changes to the Ongoing Fee Arrangement and Fee Disclosure Statement (FDS) requirements. These include the changes to the renewal period for consent, the requirement to provide FDS documents, and the use of a single consent form.

Feedback from the advice industry has indicated that the inclusion of account numbers in a client’s written consent for the deduction, or arranging of the deduction, of ongoing advice fees. Therefore, ASIC has granted a limited no-action position, where ASIC will not take action for a breach of section 962S of the Corporations Act 2001 (Corporations Act) and section 99FA of the Superannuation Industry (Supervision) Act 1993, where:

• Written consent was given by a client for the fee recipient to deduct, or arrange to deduct, fees under an OFA from 10th January 2025 until 5th 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.

Impact of this No-Action Position and Next Steps for Licensees

ASIC’s position leads to the next steps needing to be completed by Licensees potentially impacted:

1. Revision of OFA Processes

Licensees will need to review their OFA consent forms and ensure they meet the requirements as set out in 962S of the Corporations Act 2001 and include the account numbers.

2. Identification of impacted clients

The Licensee will need to identify any clients that have advice fee consent forms without a stated account number.

3. Renew of Client Consent

For the clients that have provided consent without their account numbers detailed, they will be required to complete a new OFA and consent form with the account number indicated clearly.

4. Notification to ASIC of the Breach

If there are any identified written consent forms that do not have account numbers listed on the form, this will need to be notified to ASIC prior to the September 5^th deadline.

This can be completed as a group report and should indicate that the no-action position is being utilised for this reportable situation. We can assist you with this process.

5. Termination of fees from September 5^th

In situations where the client has not provided a new consent form by the 5^th of September, the deduction of fees will need to be immediately terminated on this date.

Want to Know More?

If you require any assistance in utilising this limited no-action position and reportable breach reporting, please contact us at support@grcessentials.com.au