The FPA Professional Ongoing Fees Code is Practice Standard 7.6A made by the Board on 28 September 2016. The Code will be available from 1 July 2017 to FPA practitioner members (CFP® professionals and Financial Planner AFP® categories).
FPA members who apply and meet the eligibility criteria will be registered on a public register. Those registered will not have to comply with the requirement in s962K of the Corporations Act (Cth) 2001 to provide a biennial ‘opt-in’ renewal notice to their clients in an ongoing fee arrangement, and will instead utilise the arrangements under the code to renew such arrangements with their client every three years.
We will issue more information about the registration process and requirements soon. In the meantime, check further information below.
In readiness for registration opening soon, the Registration Agreement is now available to view. Reading this agreement will help you understand the key obligations and help you decide whether you’d like to participate.
The registration process will become available once you renew your membership for 2017-18. You will then be asked to sign and upload the agreement.
For convenience we have also included links directly to the schedules below:
Schedule 1 – FPA Professional Ongoing Fees Code
The Ongoing Fees Code forms part of the Registration Agreement too.
Schedule 2 – Participating Member Acknowledgement
You will need to provide this form of acknowledgement to the FPA when you register for the Ongoing Fees Code.
Schedule 2 – Participating Member Annual Personal Compliance Declaration
Once you are registered to the Ongoing Fees Code you will need to provide an annual compliance declaration to the FPA when you re-register.
Schedule 3 – Australian Financial Services Licensee Acknowledgement and Authorisation
This is the form we will require you to have your AFS licensee sign to indicate they support your participation in the Ongoing Fees Code.
Tools to help you satisfy your FPA Professional Ongoing Fees Code arrangements.
Sample Client Engagement Letter
Sample Fee Disclosure Statement (FDS)
Sample Statement of Participation Text
What is the FPA Professional Ongoing Fees Code?
Approved by ASIC, the FPA Professional Ongoing Fees Code will provide FPA members with an alternative to the opt-in laws when engaging clients in an Ongoing Fee Arrangement.
The FPA Professional Ongoing Fees Code is approved by ASIC under ASIC Corporations (Ongoing Fees Code) Instrument 2016/1129 for the purposes of s.962CA(1) and 1101A(1) of the Corporations Act 2001. View the instrument here
When does the FPA Professional Ongoing Fees Code take effect?
The FPA Professional Ongoing Fees Code takes effect from 1 July 2017.
Who is eligible to apply to participate in the FPA Professional Ongoing Fees Code?
CFP® Professional and Financial Planner AFP® members who are in good standing with the FPA and their licensee may apply to join the FPA Professional Ongoing Fees Code Register.
To be eligible, you will need to:
- Be a current financial member in the CFP® Professional or Financial Planner AFP® category
- Apply in the manner required by the FPA
- Have your licensee’s approval in the form required by the FPA
- Provide a copy to the FPA of the ongoing fee agreement you will use with your clients under the FPA Professional Ongoing Fees Code
- Sign the terms and conditions agreement required by the FPA
- Undertake the training provided by the FPA
When can members apply?
CFP® Professional and Financial Planner AFP® members can apply to participate in the FPA Professional Ongoing Fees Code during the 2017/18 membership subscription renewal.
What is an ongoing fee arrangement?
An Ongoing Fee Arrangement is an arrangement for the provision of personal financial services (which may include personal advice), under which a fee (however described or structured) is to be paid during a period of more than 12 months.
How will consumers know if an FPA member is participating in the FPA Professional Ongoing Fees Code?
From 1 July 2017, consumers will be able to check which FPA members are participating in the FPA Professional Ongoing Fees Code by viewing a public register on the FPA website.
Will the FPA develop training for members on the FPA Professional Ongoing Fees Code?
The FPA will develop an online training module for participating members to complete in conjunction with their registration to the FPA Professional Ongoing Fees Code.