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 962WA   ONGOING FEE ARRANGEMENT TERMINATES IF FEE DEDUCTED WITHOUT CONSENT  

962WA(1)    
It is a condition of the ongoing fee arrangement that the arrangement terminates if any of the following provisions have not been complied with in relation to the arrangement, whether by the current or a previous fee recipient:

(a)    section 962R (fee recipient must not deduct ongoing fees without consent);

(b)    section 962S (fee recipient must not arrange for deduction of ongoing fees without consent or accept such deductions).

962WA(2)    
The client is not taken to have waived the client ' s rights under the condition in subsection (1) (subject to subsection (3) ), or to have entered into a new ongoing fee arrangement, if the client gives consent that covers the deduction of ongoing fees from the account, after the arrangement terminates under subsection (1) .

962WA(3)    
However, if the client gives consent for deduction of ongoing fees from the account after the arrangement terminates under subsection (1) , the fee recipient is not obliged to refund an amount deducted, or received as a result of a deduction made, in accordance with that consent.

Note: A Court may order that the fee recipient refund amounts deducted without consent (see section 1317GB ).