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 C - Account holder consent required for deducting ongoing fees from accounts  

SECTION 962R   FEE RECIPIENT MUST NOT DEDUCT ONGOING FEES WITHOUT CONSENT  

962R(1)    
This section applies if:

(a)    an ongoing fee is, or will be, payable to a fee recipient under an ongoing fee arrangement; and

(b)    a person (the account holder ) holds an account with the fee recipient; and

(c)    the account is not:

(i) an account linked to a credit card; or

(ii) a basic deposit product; and

(d)    the fee recipient proposes to deduct the amount of the ongoing fee from the account holder ' s account.

962R(2)    
Subject to subsection (3) , the fee recipient must not deduct the amount of the ongoing fee from the account unless all of the following are satisfied:

(a)    the account holder has given the fee recipient written consent for the fee recipient to deduct amounts from the account in respect of ongoing fees under the ongoing fee arrangement;

(b)    

the consent complies with the requirements in section 962T ;

(c)    at the time of making the deduction:

(i) the consent has not been withdrawn under paragraph 962U(1)(a) ; and

(ii) if the consent has been varied under paragraph 962U(1)(b) - the consent as varied still allows for the deduction to be made; and

(iii) the consent has not ceased to have effect under section 962V .

962R(3)    
If the account holder holds the account jointly with one or more other persons, the fee recipient must not deduct the amount of the ongoing fee from the account unless all of the paragraphs in subsection (2) are satisfied in relation to the account holder as well as each of those other persons as account holders.

962R(4)    
A person contravenes this subsection if the person contravenes subsection (2) or (3) .

Note: This subsection is a civil penalty provision (see section 1317E ).