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 B - Termination, disclosure and renewal  

SECTION 962H   FEE DISCLOSURE STATEMENTS  

Fee disclosure statement

962H(1)    

A fee disclosure statement for an ongoing fee arrangement and an anniversary day is a statement in writing that:

(a)    includes the information and statements required under this section; and

(b)    

relates to:

(i) the period of 12 months (the previous year ) ending immediately before the anniversary day; and

(ii) the period of 12 months (the upcoming year ) starting on the anniversary day.

962H(1A)    
A fee disclosure statement may also include other information.

Information relating to the previous year

962H(2)    

The fee disclosure statement must include the following information relating to the previous year, subject to subsection (3) :

(a)    

the amount of each ongoing fee paid under the arrangement by the client in the previous year;

(c)    information about the services that the client was entitled to receive from the current and any previous fee recipient under the arrangement during the previous year;

(d)    information about the services that the client received from the current and any previous fee recipient under the arrangement during the previous year;

(f)    

information about any other prescribed matters.

Information relating to the upcoming year

962H(2A)    

The fee disclosure statement must include the following information relating to the upcoming year, subject to subsection (3) :

(a)    the amount of each ongoing fee that the client will be required to pay under the arrangement during the upcoming year;

(b)    information about the services that the client will be entitled to receive under the arrangement during the upcoming year;

(c)    if the client will be required to pay under the arrangement an ongoing fee after the end of the upcoming year for a service referred to in paragraph (b) - the amount of any such ongoing fee;

(d)    information about any other prescribed matters.

962H(2B)    

If an amount of an ongoing fee that is required to be included in a fee disclosure statement under subsection (2A) cannot be determined at the time of preparing the statement, the statement must include a reasonable estimate of the amount of the ongoing fee and an explanation of the method used to work out the estimate.

Statements relating to renewal

962H(2C)    

The fee disclosure statement must include:

(a)    a statement that the client may renew the ongoing fee 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 120 days beginning on the anniversary day.

Other requirements

962H(3)    
The regulations may provide either or both of the following:

(a)    that particular information is not required for a fee disclosure statement, either in a particular situation or generally;

(b)    a more detailed statement of the information that is required for a fee disclosure statement, either in a particular situation or generally.

962H(4)    

Information about the amount of an ongoing fee that is required to be included in a fee disclosure statement under this section must be expressed in Australian dollars, unless an alternative is provided in the regulations.