Ongoing fee arrangements and disclosure of lack of independence

8 days left to have your say
Date
-
Consultation Type
Exposure Draft

Key Documents

In response to recommendations 2.1 and 2.2 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the Government has released for exposure:

  • draft legislation to insert new specific obligations in the Corporations Act 2001 (Corporations Act) in relation to fee recipients (a financial services licensee or authorised representative) providing personal financial product advice to retail clients under ongoing fee arrangements; and
  • draft regulations relating to the new record-keeping requirements (recommendation 2.1); and
  • draft legislation amending the Corporations Act to require entities (a financial services licensee or authorised representative) who are authorised to provide personal advice to a retail client to disclose in writing to the client where they are not independent and why that is so (recommendation 2.2).

The draft legislation for recommendation 2.1 will enhance the existing ongoing fee arrangement provisions in the Corporations Act.

The draft legislation for recommendation 2.2 will require entities (a financial services licensee or authorised representative) who are authorised to provide personal advice to a retail client to disclose in writing to the client where they are not independent and why that is so.

Responding

You can submit responses to this consultation up until 28 February 2020. Interested parties are invited to comment on this consultation. You may make one submission across open consultations. In doing so, please make clear which measures your submission relates to. 

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. All submissions (whether or not made public) will also be provided to ASIC and/or APRA unless you otherwise indicate. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

View our submission guidelines for further information.

How To Respond

Email

FSRCconsultations@treasury.gov.au

Post

Address written submissions to:

The Manager
Financial System Division
Treasury
Langton Cres
Parkes ACT 2600

Enquiries

Email: FSRCconsultations@treasury.gov.au
Phone: Emily Hodges +61 2 6263 2111