I, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

Date    23 March 2021

Contents

Part 1—Preliminary  3

1    Name of legislative instrument 3

2    Commencement 3

3    Authority. 3

4    Definitions. 3

Part 2—Determination  4

5    Requirements for giving written consent to deductions of ongoing fees. 4

Part 1—Preliminary

1        Name of legislative instrument

This is the ASIC Corporations (Consent to Deductions—Ongoing Fee Arrangements) Instrument 2021/124.

2        Commencement

This instrument commences on the later of:

(a)     1 July 2021; and

(b)     the day after it is registered on the Federal Register of Legislation.

Note:    The register may be accessed at www.legislation.gov.au.

3        Authority

This instrument is made under section 962T of the Corporations Act 2001.

4        Definitions

In this instrument:

account holder has the same meaning as in subsections 962R(1) and 962S(1) of the Act.

Act means the Corporations Act 2001.

anniversary day, for an ongoing fee arrangement, has the meaning given by subsection 962G(3) of the Act. 

fee disclosure statement has the meaning given by subsection 962H(1) of the Act.

fee recipient has the meaning given by section 962C of the Act.

ongoing fees has the meaning given by section 962B of the Act.

ongoing fee arrangement has the meaning given by section 962A of the Act.

Part 2—Determination

5        Requirements for giving written consent to deductions of ongoing fees

(1)     The requirements in this section are specified for the purposes of section 962T of the Act in relation to giving written consent by an account holder to permit a fee recipient in relation to an ongoing fee arrangement to deduct, or arrange for or accept the deduction of, ongoing fees from the account holder’s account.

(2)     A written consent may only be given by an account holder by signing, or otherwise agreeing in writing (including electronically) to the terms of, a written consent which complies with this section and must also bear a date indicating when the consent was given by the account holder.

(3)     The written consent must include the following information:

(a)     the name of the account holder;

(b)     the name and contact details of the fee recipient;

(c)     an explanation of why the account holder’s consent is being sought;

(d)     in relation to an existing ongoing fee arrangement that might be renewed by the account holder and subject to paragraph (f)—the frequency and amount of each ongoing fee the account holder will pay during the upcoming year if the account holder were to renew the existing ongoing fee arrangement, where the upcoming year is a period of 12 months beginning on the next anniversary day for the ongoing fee arrangement;

(e)     in relation to a new ongoing fee arrangement that might be entered into by the account holder and subject to paragraph (f)—the frequency and amount of each ongoing fee the account holder will pay during the upcoming year if the account holder were to enter into a new ongoing fee arrangement, where the upcoming year is a period of 12 months beginning on a day that is no more than 30 days after the fee recipient gives or makes available to the account holder all of the information that this subsection requires to be included in a written consent;

(f)     if the amount of an ongoing fee the account holder will pay during the upcoming year cannot be determined—a reasonable estimate of the amount of the ongoing fees the account holder will pay during the upcoming year and an explanation of the method used to work out the estimate;

(g)     details of each account from which the account holder will pay ongoing fees and, for each account and subject to paragraph (f), the amount of each ongoing fee the account holder will pay from each account;

(h)     statements to the effect that:

(i)      the consent will cease to have effect up to 150 days after the anniversary day for the ongoing fee arrangement; and

(ii)     the account holder can withdraw their consent or terminate or vary the ongoing fee arrangement at any time by notice in writing to the fee recipient.

(4)     The written consent must be worded and presented in a clear, concise and effective manner.

(5)     A written consent need not include the information specified in subsection (3) to the extent all of the following are satisfied:

(a)     the written consent is combined with a fee disclosure statement given to the account holder;

(b)     the information that would otherwise be required to be included in the written consent is included in the fee disclosure statement; and

(c)     the fee disclosure statement is worded and presented in a clear, concise and effective manner.