Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Division 3 - Charging ongoing fees to clients  

Subdivision B - Termination, disclosure and renewal  

SECTION 962K   FEE RECIPIENT MUST GIVE RENEWAL NOTICE  

962K(1)  


The current fee recipient in relation to an ongoing fee arrangement must, before the end of a period of 60 days beginning on the renewal notice day for the arrangement, give the client a renewal notice and a fee disclosure statement in relation to the arrangement.

962K(2)  
A renewal notice , in relation to an ongoing fee arrangement, is a notice in writing that includes:


(a) a statement that the client may renew the arrangement by giving the current fee recipient notice in writing of the election; and


(b) a statement that the arrangement will terminate, and no further advice will be provided or fee charged under it, if the client does not elect to renew the arrangement; and


(c) a statement that the client will be taken to have elected not to renew the arrangement if the client does not give the current fee recipient notice in writing of an election to renew before the end of the renewal period; and


(d) a statement that the renewal period is a period of 30 days beginning on the day on which the renewal notice and fee disclosure statement is given to the client.

962K(3)  
The regulations may provide that subsection (1) does not apply in a particular situation.


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