ASIC has announced a ‘no action’ position with respect to invalid fee consent forms, where the account number was missing from the consent form submitted to product providers for the withdrawal of advice fees from product accounts.
The regulator states it does not intend to take action for breaches where:
- Written consent was given by a client under section 962S of the Corporations Act for the fee recipient to deduct or arrange to deduct fees under an OFA from 10 January 2025 until 5 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
Phil Anderson, the FAAA’s GM Policy, Advocacy & Standards, says the issue of invalid consent forms was recognised in January, and that the FAAA has been working with both Treasury and ASIC to find a solution.
“This does not apply universally, as some product providers are able to generate account numbers when the application is done on-line,” states Anderson.
“We expect the remaining product providers to seek solutions to address this complication. This is also not an issue for clients who are paying their fees from a bank account or credit card.”
Anderson says while the ‘no-action’ position provides relief for advisers, it is not without complication and additional work.
This ‘no-action’ position does not prevent third parties from taking legal action…
“The positive element is that they are not seeking to have fees reimbursed,” he says.
“However, instead they are giving advisers until 5 September 2025 to put new compliant fee consent forms in place. “
ASIC states these new forms need to cover the period where the fees have already been withdrawn from the product accounts.
It also states that superannuation trustees should review their processes for the oversight of advice fee deductions, and ensure any written consents comply with the Corporations Act requirements.
“This ‘no-action’ position does not prevent third parties from taking legal action in relation to the conduct,” states ASIC.
