Corporations Act 2001

CHAPTER 10 - TRANSITIONAL PROVISIONS  

PART 10.46 - APPLICATION AND TRANSITIONAL PROVISIONS RELATING TO SCHEDULE 1 TO THE FINANCIAL SECTOR REFORM (HAYNE ROYAL COMMISSION RESPONSE NO. 2) ACT 2021  

Division 3 - Existing ongoing fee arrangements  

SECTION 1673C   APPLICATION - ANNUAL REQUIREMENT TO GIVE FEE DISCLOSURE STATEMENT  

General rule

1673C(1)    
Subject to this section, Subdivision B of Division 3 of Part 7.7A , as amended by the amending Schedule, applies to the ongoing fee arrangement on and from 1 July 2021.

Modified application during transition period

1673C(2)    
For the period from 1 July 2021 to 30 June 2022 (the 12 month transition period ):

(a)    subsection 962G(1) , as amended by the amending Schedule, applies in relation to the ongoing fee arrangement as if it were replaced with subsection (3) of this section; and

(b)    subsection 962H(1) , as amended by the amending Schedule, applies in relation to the ongoing fee arrangement as if it were replaced with subsection (4) of this section.

1673C(3)    
The current fee recipient in relation to the ongoing fee arrangement must, on a day that is before the end of the 12 month transition period, give the client a fee disclosure statement for the arrangement and the transition day.

1673C(4)    
A fee disclosure statement for an ongoing fee arrangement and a transition day is a statement in writing that:

(a)    includes the information and statements required under this section; and

(b)    relates to:

(i) the period of 12 months (the previous year ) ending immediately before the transition day for the arrangement; and

(ii) the period of 12 months (the upcoming year ) starting on the transition day for the arrangement.

Modified application after transition period

1673C(5)    
After 1 July 2021, subsection 962G(3) , as inserted by the amending Schedule, applies in relation to the ongoing fee arrangement as if it were replaced with subsection (6) of this section.

1673C(6)    
Anniversary day , for an ongoing fee arrangement, means:

(a)    the transition day for the arrangement; or

(b)    the anniversary of the transition day for the arrangement.

Acquisition of property

1673C(7)    
Section 1350 does not apply in relation to the operation of Subdivision B of Division 3 of Part 7.7A , as amended by the amending Schedule, in respect of the ongoing fee arrangement.