ASIC has published Info Sheet 286 which outlines the new ongoing fee arrangement obligations and consents made in Schedule 1 of the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024. It applies to ongoing fee arrangements entered into on or after 10 January 2025, and already in force on that day, from the first anniversary of the arrangement that occurs after 10 January 2025. Background.
An ongoing fee arrangement exists where:
- the fee recipient gives personal advice to a retail client;
- the fee recipient and client enter into an arrangement; and
- under the terms of the arrangement, the client must pay the fee recipient a fee (however described or structured) during a period of more than 12 months.
If a fee recipient fails to comply with the OFA consent obligations, the ongoing fee arrangement will terminate and the fee recipient must not continue to charge fees under the arrangement. Civil penalties apply to a breach of this requirement.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
