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 962J   CLIENT MAY TERMINATE ONGOING FEE ARRANGEMENT AT ANY TIME  

962J(1)    
It is a condition of the ongoing fee arrangement that the client may terminate the arrangement at any time.

962J(2)    
A client may terminate the ongoing fee arrangement by giving notice to the fee recipient in relation to the ongoing fee arrangement, in writing, that the client wishes to terminate the arrangement.

962J(3)    
If the client gives a notice under subsection (2) to terminate the ongoing fee arrangement, the arrangement terminates on the day on which the notice is given.

962J(4)    
Any condition of the ongoing fee arrangement, or any other arrangement, that requires the client to pay an amount on terminating the ongoing fee arrangement is void to the extent that the amount exceeds the sum of:

(a)    any liability that the client has accrued but not satisfied under the ongoing fee arrangement before the termination; and

(b)    the costs of the current fee recipient incurred solely and directly because of the termination.