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 962G   REQUIREMENTS FOR CONSENT  

962G(1)    

A written consent given in relation to an ongoing fee arrangement complies with the requirements in this section if:

(a)    before obtaining the consent, the fee recipient disclosed to the client, in writing, the matters set out in subsection (2) ; and

(b)    the consent is for:

(i) the ongoing fee arrangement to be entered into, or renewed (as the case requires); and

(ii) the ongoing fees disclosed as required under paragraph (2)(e) to be charged to the client; and

(c)    the consent is signed by the client; and

(d)    the consent is dated; and

(e)    the fee recipient has the consent or a copy of the consent.

962G(2)    
The matters that must be disclosed are as follows:

(a)    the name and contact details of the person who is the fee recipient under the ongoing fee arrangement;

(b)    an explanation of why the fee recipient is seeking the consent;

(c)    the maximum period until the consent will cease to have effect under section 962H ;

(d)    information about the services that the client will be entitled to receive under the arrangement during that period;

(e)    for each ongoing fee that the client will be required to pay under the arrangement during that period:

(i) the amount of the fee; or

(ii) if the amount of the fee cannot be determined at the time of disclosure, a reasonable estimate of the amount of the ongoing fee and an explanation of the method used to work out the estimate;

(f)    the frequency of the ongoing fees during that period;

(g)    a statement that the ongoing fee arrangement can be terminated by the client at any time;

(h)    a statement that the arrangement will terminate, and no further advice will be provided or fee charged under it, if the consent is not given;

(i)    the date on which the arrangement will terminate if the consent is not given;

(j)    information about any other matters prescribed by the regulations.