New legislation on fee disclosure and renewals

Off the back of the Hayne Royal Commission, changes in the way we manage and administer Financial Disclosure Statements (FDS) and Renewal notices (Opt ins) have been introduced with legislation coming into effect the 1st July 2021.

What is changing

Where we provide Clients with an ongoing fee arrangement, we will now need to provide:

Annual Renewal (Opt in)

Originally this was every two years and did not include clients that we onboarded prior to 1/7/2013. This has now been changed to include all clients and for an annual opt in.

Enhanced Fee Disclosure Statement (FDS)

While we have been providing these statements for our existing clients, there have been a few amendments. The statement must now include:

  • Fees paid by the client over the last 12 months
  • Services offered & provided over the last 12 months
  • Fees and Services for the next 12 months

Consent to Ongoing Fee Arrangements

Written consent from the client is now required to enable a fee recipient to deduct ongoing fees from a clients account. Fee recipients could include ourselves if we were debiting ongoing fees and/or other institutions such as Macquarie Wrap and BT Panorama.

We understand that there are institutions who are proposing a universal client consent form but this is still a continued discussion.  At this stage we will need to use the institutions own forms in addition to ours to obtain consent.

We have combined all of these into the one statement that the client will now need to sign. These statements will be sent to clients on the anniversary of their Ongoing Service Agreement and they will have 120 days to sign and return the form otherwise we will need to cease fees and services.

To speak to our client services team, please call 1800 064 959 or click here to contact us.

The information in this article contains general advice and is provided by Primestock Securities Ltd AFSL 239180. That advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs. You should obtain and read the Product Disclosure Statement (PDS) before making any decision to acquire any financial product referred to in this article. Please refer to the FSG (www.primefinancial.com.au/fsg) for contact information and information about remuneration and associations with product issuers. This information should not be relied upon as a substitute for professional advice, and we encourage you to seek specific advice from your professional adviser before making a decision on the matters discussed in this article. Information in this article is current at the date of this article, and we have no obligation to update or revise it as a result of any change in events, circumstances or conditions upon which it is based.

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