Corporations Act 2001
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
View history note
Hide history noteOngoing fee arrangements
962A(1)
If: (a) a financial services licensee gives personal advice to a person as a retail client; and (b) that person enters into an arrangement with the financial services licensee, or a representative of the financial services licensee; and (c) under the terms of the arrangement, a fee (however described or structured) is to be paid during a period of more than 12 months;
the arrangement is an ongoing fee arrangement .
962A(2)
If: (a) a representative of a financial services licensee gives personal advice to a person as a retail client; and (b) that person enters into an arrangement with the representative or the financial services licensee; and (c) under the terms of the arrangement, a fee (however described or structured) is to be paid during a period of more than 12 months;
the arrangement is an ongoing fee arrangement .
Paying for advice by instalments
962A(3)
Despite subsections (1) and (2) , an arrangement is not an ongoing fee arrangement if each of the following is satisfied: (a) the total of the fees payable under the terms of the arrangement is fixed at the time the arrangement is entered into; (b) the total of the fees payable under the terms of the arrangement is specified in the arrangement; (c) the fees payable under the terms of the arrangement are to be paid by instalments over a fixed period specified in the arrangement; (d) the fees payable under the terms of the arrangement can reasonably be characterised as relating to personal advice given to the person before the arrangement is entered into; (e) under the terms of the arrangement, there is no fee payment of which, or the amount of which, is dependent on the amount invested by the person, or the amount in relation to which personal advice is given; (f) the person cannot opt out of payment of any of the fees payable under the terms of the arrangement.
Insurance premiums
962A(4)
Despite subsections (1) and (2) , an arrangement is not an ongoing fee arrangement if the only fee payable under the arrangement is an insurance premium.
Other prescribed arrangements
962A(5)
Despite subsections (1) and (2) , an arrangement is not an ongoing fee arrangement if it is an arrangement of a prescribed kind that relates to a fee that is prescribed as a product fee.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
