The Financial Planning Association of Australia The Financial Planning Association of Australia

Ongoing fee arrangements

Planners who have an ongoing fee arrangement with a client must provide an annual Fee Disclosure Statement (FDS), an annual renewal notice (opt-in), and annually seek the client’s consent to deduct advice fees.

In response to fee for no service issues and to assist clients to determine whether they are deriving benefits from ongoing fee arrangements, legislation contained in the Financial Sector Reform (Hayne Royal Commission Response No. 2) Act 2021  became effective on 1 July 2021. This implements Banking Royal Commission Recommendations 2.1 (Annual renewal and payment), in addition to 3.3 (Limitations on deducting advice fees from choice accounts).

These requirements apply to all clients, including those clients who implemented ongoing fee arrangements after 1 July 2013.