The Australian Securities and Investments Commission (ASIC) has called on financial advisers and superannuation trustees to ensure they are complying with client consent requirements when entering into ongoing fee arrangements (OFAs).
This follows ASIC’s decision to grant a limited no-action position to ease compliance concerns raised by the financial advice industry related to the inclusion of account numbers in client consents for OFAs.
The relief between 10 January and 5 September 2025 provides advisers and trustees with regulatory breathing room as they navigate consent requirements under section 962S of the Corporations Act 2001 and section 99FA of the Superannuation Industry (Supervision) Act 1993.
ASIC has confirmed it does not intend to take enforcement action where:
- A client provided written consent to deduct advice fees under an OFA during the specified period
- The consent did not include an account number; and
- In the case of superannuation, the trustee deducted fees from the member’s account as per the consent.
But the corporate regulator made clear that relying on the no-action position did not override other legal consequences, such as the automatic termination of an OFA under section 962WA of the Corporations Act, where consent was non-compliant.
“Superannuation trustees should review their processes for the oversight of advice fee deductions and ensure that any written consents comply with the Corporations Act requirements,” ASIC said in a media release.
To rely on this no-action position, the licensee or representative must enter into a new OFA with the client and seek written consent to deduct ongoing fees, including the period when fees were deducted under a non-compliant written consent.
The revised OFA must comply with all the requirements in section 962T of the Corporations Act.
If this is not in place by 5 September 2025, the fee recipient must take steps to stop receiving fees.
