Financial Sector Reform (Hayne Royal Commission Response No. 2) Act 2021 (19 of 2021)

Schedule 3   Advice fees in superannuation

Part 1   General fees rules

Superannuation Industry (Supervision) Act 1993

3   After section 99F

Insert:

99FA Cost of financial product advice - fees charged to member concerned

(1) The trustee or the trustees of a regulated superannuation fund must not directly or indirectly pass the cost of providing financial product advice in relation to a member of the fund on to the member, unless:

(a) the cost is to be paid in accordance with the terms of an arrangement entered into by the member; and

(b) the trustee passes the cost on, or the trustees pass the cost on, in accordance with the terms of a written consent of the member; and

(c) if the arrangement is an ongoing fee arrangement:

(i) the consent is of a kind described in paragraph 962R(2)(a) or 962S(3)(a) of the Corporations Act 2001; and

(ii) if requirements that apply in relation to the consent are determined under section 962T of that Act - the consent complies with those requirements; and

(d) if the arrangement is not an ongoing fee arrangement:

(i) the consent is for the trustee or the trustees to directly or indirectly pass the cost of providing financial product advice in relation to the member on to the member; and

(ii) if requirements that apply in relation to the consent are determined under subsection (2) - the consent complies with those requirements; and

(e) the trustee has, or the trustees have, the consent or a copy of the consent.

Note: If the arrangement is an ongoing fee arrangement, it may be terminated as a result of section 962F or 962FA of the Corporations Act 2001.

(2) ASIC may, by legislative instrument, make a determination specifying requirements for the purposes of subparagraph (1)(d)(ii).

(3) Subsection (1) does not apply if the cost is shared by passing it on to the member mentioned in subsection (1) and to other members of the fund.