ASIC has released Regulatory Guide 245 Fee disclosure statements (RG 245) which outlines the fee disclosure statement (FDS) requirements that will apply from 1 July 2013 to AFS licensees and their representatives who receive ongoing fees from retail clients to whom they have given personal advice.
Under the FOFA reforms, advice providers receiving fees for giving personal advice under an ongoing arrangement with a retail client must provide the client with an annual FDS setting out information about:
- the fees paid by the client;
- the services provided to the client; and
- the services that the client was entitled to receive.
The regulatory guide explains:
- the FDS obligations and when they apply;
- who must give an FDS;
- the circumstances giving rise to the obligation to give an FDS; and
- the information that must be disclosed in the FDS.
It also sets out limited no-action transition positions adopted by ASIC in relation to streamlining the FDS obligations. These no-action positions only apply in relation to existing clients.
