Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 (67 of 2024)

Schedule 1   Delivering better financial outcomes - reducing red tape

Part 2   Ongoing fee arrangements

Corporations Act 2001

20   At the end of Subdivision D of Division 3 of Part 7.7A

Add:

962Y Form for consents

(1) For the purposes of this Division, the Minister may approve one or more forms for giving consent in relation to one or more of the following:

(a) entering into an ongoing fee arrangement;

(b) renewing an ongoing fee arrangement;

(c) deducting an amount in respect of ongoing fees from an account;

(d) arranging to deduct an amount in respect of ongoing fees from an account.

Note: Despite consent being given in an approved form, an account provider (other than the fee recipient) may request additional information from the fee recipient before deducting ongoing fees from an account.

(2) If the Minister has approved a form under subsection (1), a consent given for the purposes of this Division must be in the approved form.

962YA Combining information in a single notice or form

(1) If, under this Division, a person is required to give more than one notice or form to the same person, the information may be combined and given in a single notice or form.

(2) If a single notice or form is given under subsection (1), the single notice or form must satisfy all of the requirements for giving each notice or form and clearly state the purposes for which it is being given.

Subdivision E - Common rules for terminations under this Division

962Z Civil penalty provision - charging ongoing fees after arrangement terminated

If an ongoing fee arrangement terminates for any reason, the fee recipient must not charge a fee that purports to be an ongoing fee under the arrangement.

Note: This section is a civil penalty provision (see section 1317E).

962ZA Effect of termination

To avoid doubt, if, under an ongoing fee arrangement, the continued provision of a service to the client by the fee recipient in relation to the arrangement is dependent on the continued payment of an ongoing fee, on termination of the arrangement, the obligation to continue to provide the service also terminates.