Financial Sector Reform (Hayne Royal Commission Response - Advice Fees) Regulations 2021 (F2021L00581)

Schedule 1   Ongoing fee arrangements

Corporations Regulations 2001

2   At the end of Division 3 of Part 7.7A

Add:

7.7A.11AA Compliance records required to be kept by fee recipients

(1) This regulation is made for the purposes of section 962X of the Act.

(2) A fee recipient must keep the following records in relation to an ongoing fee arrangement the fee recipient has with the client:

(a) each fee disclosure statement the fee recipient has given to the client;

(b) the date on which each such fee disclosure statement was given to the client, and the manner in which it was given;

(c) if the client gives any of the following notifications to the fee recipient - the notification and the date on which the notification was given:

(i) a notification of an election to renew the ongoing fee arrangement;

(ii) a notification of an election not to renew the ongoing fee arrangement;

(iii) a notification terminating the ongoing fee arrangement;

(d) if the ongoing fee arrangement has terminated - the date on which the arrangement terminated and the basis on which the arrangement terminated.

(3) A fee recipient must also keep the following records in relation to an ongoing fee arrangement:

(a) each consent for deductions relating to the ongoing fee arrangement given to the fee recipient for the purposes of section 962R or 962S of the Act;

(b) the date on which each such consent was given;

(c) each notice given to the fee recipient under subsection 962U(1) of the Act withdrawing or varying such consent;

(d) the date on which each such notice was given;

(e) each confirmation of receipt of such notice given by the fee recipient under subsection 962U(2) of the Act;

(f) each of the following communications in relation to the consent referred to in paragraph (a), and the date on which the communication occurred:

(i) giving a copy of the consent as required under paragraph 962S(3)(c) of the Act;

(ii) giving a copy of a notice withdrawing or varying the consent as required under paragraph 962U(2)(b) of the Act;

(iii) giving written notice of the cessation of the consent under subsection 962V(2) of the Act;

(g) if the fee recipient arranges with another person (the account provider ) for deductions relating to the ongoing fee arrangement to be made, as referred to in paragraph 962S(1)(d) of the Act - the details of the arrangement with the account provider.