Regulatory Guide 245 - Fee disclosure statements CPD
This is a guide for persons who provide personal advice to retail clients, and their professional advisers (such as lawyers).
This guide explains the fee disclosure statement (FDS) obligations in Div 3 of Pt 7.7A of the Corporations Act 2001 (Corporations Act) and the obligations they create for persons who provide personal advice to retail clients under an ongoing fee arrangement.
Australian financial services (AFS) licensees and representatives of AFS licensees who enter into or have an ongoing fee arrangement with retail clients must provide their retail clients with a fee disclosure statement (FDS) on an annual basis.
The FDS obligations must be met for both new and existing retail clients who enter into or have entered into an ongoing fee arrangement.
This guide explains the FDS obligations in Div 3 of Pt 7.7A of the Corporations Act 2001 (Corporations Act). In particular, it provides guidance on:
• How to prepare an FDS; and
• How and when an FDS should be given.
It also sets out limited no-action positions adopted by ASIC in relation to the FDS obligations. These no-action positions only apply in relation to existing clients.
In addition to the obligation to give an FDS, other fee and remuneration disclosure and conduct obligations apply to AFS licensees and their authorised representatives. These obligations include the disclosure of certain information in the Financial Services Guide (FSG) and in any Statements of Advice (SOAs).