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.