ASIC is cracking down on advice fees

Alex Burke,  Senior Writer,  No More Practice Education

ASIC recently provided an update on the reviews into fee for no service being undertaken by Australia's largest financial institutions.

You will likely recall that in the final Royal Commission report, Kenneth Hayne said that any ongoing advice fees charged to clients should be renewed annually. He also said advisers must record (in writing) each year what services a client will be “entitled to receive” under this arrangement and the total fees to be charged.

He added that advisers must neither “permit nor require payment of fees from any account held for or on behalf of the client except on the client’s express written authority to the entity that conducts that account given at, or immediately after, the latest renewal of the ongoing fee arrangement.”

While the major wealth groups being targeted by ASIC have been conducting these reviews, the regulator has noted they have been too slow in conducting reviews pertaining to

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