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This instrument approves the FPA Professional Ongoing Fees Code dated 28 September 2016 and issued by the FPA, as in force at the date of this instrument. This legislative instrument exempts a person who receives fees under an ongoing fee arrangement from giving the client a written renewal notice every two years which requires the client to opt-in to renew that agreement, on the conditions set out in the instrument.
Administered by: Treasury
Made 21 Nov 2016
Registered 24 Nov 2016
Tabled HR 28 Nov 2016
Tabled Senate 28 Nov 2016
Table of contents.

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ASIC Corporations (Ongoing Fees Code) Instrument 2016/1129

I, Stephen Yen PSM, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

Date: 21 November 2016

 

 

 

 

Stephen Yen

 

 



Part 1—Preliminary

1        Name of legislative instrument

This is the ASIC Corporations (Ongoing Fees Code) Instrument 2016/1129.

2        Commencement

This instrument commences on 1 July 2017.

3        Authority

This instrument is made under subsections 962CA(1) and 1101A(1) of the Corporations Act 2001.

4        Definitions

In this instrument:

Act means the Corporations Act 2001.

FPA means Financial Planning Association of Australia Limited (ACN 054 174 453).

Ongoing Fees Code means the FPA Professional Ongoing Fees Code dated 28 September 2016 and issued by the FPA, as in force at the date of this instrument.


Part 2—Approval

5        Approval of Ongoing Fees Code

The Ongoing Fees Code is approved.


Part 3—Exemption

6        Exemption from application of opt-in requirement

(1)     A person does not have to comply with section 962K of the Act in relation to an ongoing fee arrangement covered by the Ongoing Fees Code.

(2)     The exemption in subsection (1) may only be relied on where the person:

(a)     is a member of the FPA in either of the following categories:

(i)      CFP® Professional;

(ii)     Financial Planner AFP®; and

(b)     is party to the FPA Professional Ongoing Fees Code Participating Member Registration Agreement with the FPA in the form given by the FPA to ASIC on 30 September 2016.

Note 1: A person who relies on the exemption in subsection (1) is still subject to the requirement in section 962G of the Act to give a fee disclosure statement every year.

Note 2: The Ongoing Fees Code and terms of the agreement referred to in paragraph (2)(b) are available at http://fpa.com.au/.