Corporations Act 2001

CHAPTER 10 - TRANSITIONAL PROVISIONS  

PART 10.46 - APPLICATION AND TRANSITIONAL PROVISIONS RELATING TO SCHEDULE 1 TO THE FINANCIAL SECTOR REFORM (HAYNE ROYAL COMMISSION RESPONSE NO. 2) ACT 2021  

Division 1 - Introduction  

SECTION 1673  

1673   DEFINITIONS  

In this Part:

amending Schedule
means Schedule 1 to the Financial Sector Reform (Hayne Royal Commission Response No. 2) Act 2021 .

disclosure day
for an ongoing fee arrangement has the same meaning as it has in Part 7.7A , as in force immediately before the amending Schedule commences.

renewal notice
has the same meaning as it has in Part 7.7A , as in force immediately before the amending Schedule commences.

renewal notice day
has the same meaning as it has in Part 7.7A , as in force immediately before the amending Schedule commences.

transition day
, for an ongoing fee arrangement, means the earlier of:

(a) the day when a fee disclosure statement is given for the arrangement in accordance with subsection 1673C(3) ; and

(b) the last day of the 12 month transition period.

Division 2 - New ongoing fee arrangements  

SECTION 1673A  

1673A   APPLICATION PROVISION FOR NEW ONGOING FEE ARRANGEMENTS  

The amendments made by the amending Schedule apply in relation to an ongoing fee arrangement entered into on or after 1 July 2021.

Division 3 - Existing ongoing fee arrangements  

SECTION 1673B  

1673B   APPLICATION OF THIS DIVISION  

This Division applies in relation to an ongoing fee arrangement that is in force immediately before 1 July 2021.

SECTION 1673C   APPLICATION - ANNUAL REQUIREMENT TO GIVE FEE DISCLOSURE STATEMENT  

General rule

1673C(1)    
Subject to this section, Subdivision B of Division 3 of Part 7.7A , as amended by the amending Schedule, applies to the ongoing fee arrangement on and from 1 July 2021.

Modified application during transition period

1673C(2)    
For the period from 1 July 2021 to 30 June 2022 (the 12 month transition period ):

(a)    subsection 962G(1) , as amended by the amending Schedule, applies in relation to the ongoing fee arrangement as if it were replaced with subsection (3) of this section; and

(b)    subsection 962H(1) , as amended by the amending Schedule, applies in relation to the ongoing fee arrangement as if it were replaced with subsection (4) of this section.

1673C(3)    
The current fee recipient in relation to the ongoing fee arrangement must, on a day that is before the end of the 12 month transition period, give the client a fee disclosure statement for the arrangement and the transition day.

1673C(4)    
A fee disclosure statement for an ongoing fee arrangement and a transition day is a statement in writing that:

(a)    includes the information and statements required under this section; and

(b)    relates to:

(i) the period of 12 months (the previous year ) ending immediately before the transition day for the arrangement; and

(ii) the period of 12 months (the upcoming year ) starting on the transition day for the arrangement.

Modified application after transition period

1673C(5)    
After 1 July 2021, subsection 962G(3) , as inserted by the amending Schedule, applies in relation to the ongoing fee arrangement as if it were replaced with subsection (6) of this section.

1673C(6)    
Anniversary day , for an ongoing fee arrangement, means:

(a)    the transition day for the arrangement; or

(b)    the anniversary of the transition day for the arrangement.

Acquisition of property

1673C(7)    
Section 1350 does not apply in relation to the operation of Subdivision B of Division 3 of Part 7.7A , as amended by the amending Schedule, in respect of the ongoing fee arrangement.

SECTION 1673D   TRANSITIONAL - EXISTING OBLIGATION TO GIVE A FEE DISCLOSURE STATEMENT UNDER SECTION 962G  

1673D(1)    
This section applies if:

(a)    a disclosure day for the ongoing fee arrangement occurs before 1 July 2021; and

(b)    the period of 60 days beginning on the disclosure day ends on or after 1 July 2021; and

(c)    before 1 July 2021 the current fee recipient in relation to the ongoing fee arrangement has not given a fee disclosure statement in relation to the ongoing fee arrangement in accordance with the obligation arising under section 962G (as in force before 1 July 2021) in relation to the disclosure day.

1673D(2)    
The obligation on the fee recipient to give the fee disclosure statement within the 60 day period beginning on the disclosure day ceases on 1 July 2021.

1673D(3)    
However, to the extent that the fee disclosure statement referred to in subsection (2) would have been required to include information in relation to a period that would not otherwise be required to be included in a fee disclosure statement given under section 1673C , the fee disclosure statement given under that section must include that information.

SECTION 1673E   TRANSITIONAL - EXISTING OBLIGATION TO GIVE A RENEWAL NOTICE AND FEE DISCLOSURE STATEMENT UNDER SECTION 962K  

1673E(1)    
This section applies if:

(a)    a renewal notice day for the ongoing fee arrangement occurs before 1 July 2021; and

(b)    the period of 60 days beginning on the renewal notice day ends on or after 1 July 2021; and

(c)    before 1 July 2021 the current fee recipient in relation to the ongoing fee arrangement has not given a renewal notice and a fee disclosure statement in relation to the ongoing fee arrangement in accordance with the obligation arising under section 962K (as in force before 1 July 2021) in relation to the renewal notice day.

1673E(2)    
The obligation on the fee recipient to give the renewal notice and fee disclosure statement within the 60 day period beginning on the renewal notice day ceases on 1 July 2021.

1673E(3)    
However, to the extent that the fee disclosure statement referred to in subsection (2) would have been required to include information in relation to a period that would not otherwise be required to be included in a fee disclosure statement given under section 1673C , the fee disclosure statement given under that section must include that information.

SECTION 1673F   APPLICATION - CONSENT REQUIREMENTS FOR DEDUCTIONS OF ONGOING FEES  

1673F(1)    
Subdivision C of Division 3 of Part 7.7A , as inserted by the amending Schedule, applies in relation to the ongoing fee arrangement on and from 1 July 2022.

1673F(2)    
However, if a person gives a fee recipient in relation to the ongoing fee arrangement consent for the purposes of that Subdivision before 1 July 2022:

(a)    section 962U (variation or withdrawal of consent) in that Subdivision applies in relation to the consent from when it is given; and

(b)    section 962X (obligation to keep records of compliance), as inserted by the amending Schedule, applies in relation to records relating to the consent.

1673F(3)    
Section 1350 does not apply in relation to the operation of Subdivision C of Division 3 of Part 7.7A , as inserted by the amending Schedule, in respect of the ongoing fee arrangement.

SECTION 1673G  

1673G   APPLICATION - COMPLIANCE RECORDS  

Subdivision D of Division 3 of Part 7.7A , as inserted by the amending Schedule, applies on and from 1 July 2021 in relation to a fee recipient ' s compliance with Division 3 of Part 7.7A on and from that date in relation to the ongoing fee arrangement.