POWERED BY MOMENTUM MEDIA
Trustees urged to fix OFA consents by September
ASIC has issued a warning to financial advisers and superannuation trustees to ensure they are complying with client consent requirements when entering into ongoing fee arrangements.
In a statement on Friday, the corporate regulator said it has granted a limited no-action position in response to a specific issue raised by the advice profession about the inclusion of account numbers in a client’s written consent for the deduction, or arranging of the deduction, of ongoing advice fees.
ASIC assured it does not intend to take action for breaches of section 962S of the Corporations Act 2001 or section 99FA of the Superannuation Industry (Supervision) Act 1993, where written consent to deduct fees under an ongoing fee arrangement was provided between 10 January and 5 September 2025 without including an account number.
This applies where, in the case of superannuation, trustees deducted the advice fees from the member’s account as outlined in the consent.
“Relying on this no-action position does not prevent an OFA terminating under section 962WA where a written consent was not compliant because it did not include the account number,” the regulator said.
It further said that in order to rely on this no-action position, the financial services licensee or representative must enter into a new OFA with the client and seek a new written consent for the fee recipient to deduct or arrange to deduct ongoing fees, including to cover the period where any fees were deducted under a non-compliant written consent.
“The revised OFA must comply with all the requirements in section 962T of the Corporations Act. If this is not in place by 5 September 2025, the fee recipient must take steps to stop receiving fees,” ASIC said.
Regarding superannuation trustees in particular, ASIC said they should review their processes for the oversight of advice fee deductions and ensure that any written consents comply with the Corporations Act requirements.
“This no-action position does not prevent third parties from taking legal action in relation to the conduct,” it said.
Recommended for you
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
