Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Division 3 - Charging ongoing fees to clients  

Subdivision B - Client consent required for ongoing fee arrangements  

SECTION 962F   ONGOING FEE ARRANGEMENT TERMINATES WITHOUT CONSENT  

962F(1)    

It is a condition of an ongoing fee arrangement that the arrangement terminates if:

(a)    the client has not given a written consent in relation to the arrangement that complies with the requirements in section 962G ; or

(b)    all of the following apply:

(i) the client has given a written consent in relation to the arrangement that complies with the requirements in section 962G ;

(ii) that consent has ceased to have effect under section 962H ;

(iii) the client has not given a new consent that meets the requirements in section 962G in relation to the arrangement in the period specified in paragraph 962H(1)(b) .

962F(2)    

The client is not taken to have waived the client ' s rights under the condition in subsection (1) (subject to subsection (3) ), or to have entered into a new ongoing fee arrangement, if the client makes a payment of an ongoing fee after the arrangement terminates under subsection (1) .

962F(3)    

However, if the client makes a payment of an ongoing fee after the arrangement terminates under subsection (1) , the fee recipient is not obliged to refund the payment.

Note: A Court may order that the fee recipient refund the amount (see section 1317GA ).