ASIC Corporations (Consent to Deductions—Ongoing Fee Arrangements) Instrument 2021/124

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ASIC Corporations (Consent to Deductions—Ongoing Fee Arrangements) Instrument 2021/124

 

About this compilation

 

Compilation No. 1

 

This is a compilation of ASIC Corporations (Consent to Deductions—Ongoing Fee Arrangements) Instrument 2021/124 as in force on 29 June 2023. It includes any commenced amendment affecting the legislative instrument to that date.

 

This compilation was prepared by the Australian Securities and Investments Commission.

 

The notes at the end of this compilation (the endnotes) include information

about amending instruments and the amendment history of each amended provision.

 

Contents

Part 1—Preliminary

1 Name of legislative instrument

3 Authority

4 Definitions

Part 2—Determination

5 Requirements for giving written consent to deductions of ongoing fees

Endnotes 

Endnote 1—Instrument history

Endnote 2—Amendment history

Part 1—Preliminary

1 Name of legislative instrument

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

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 at the time the account holder signs (or otherwise agrees in writing to the terms of) the written consent;

(b) the name and contact details of the person who, at the time the account holder signs (or otherwise agrees in writing to the terms of) the written consent, is to be 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.


Endnotes

Endnote 1—Instrument history

Instrument number

Date of FRL registration

Date of commencement

Application, saving or transitional provisions

2021/124

24/3/2021 (see F2021L00299)

1/7/2021

 

2023/512

28/6/2023 (see F2023L00880)

29/6/2023

 

Endnote 2—Amendment history

ad. = added or inserted     am. = amended     LA = Legislation Act 2003    rep. = repealed     rs. = repealed and substituted

Provision affected 

How affected

Section 2

rep. s48D LA

Section 5(3)(a)

am. 2023/512

Section 5(3)(b)

am. 2023/512

 

 

Overview

The ASIC Corporations (Consent to Deductions—Ongoing Fee Arrangements) Instrument 2021/124 was enacted to address the need for clearer and more comprehensive written consent processes for account holders when it comes to ongoing fee arrangements. This legislative instrument is made under section 962T of the Corporations Act 2001 and aims to ensure that account holders are fully informed and have explicitly agreed to the terms under which their accounts may be charged ongoing fees. By specifying detailed requirements for written consent, including the necessity of clear and concise communication of fee details, this instrument seeks to protect consumers from misunderstandings or unexpected charges. The instrument also allows for the combination of written consent with a fee disclosure statement, provided the latter contains all necessary information and is presented effectively. The policy objective of this instrument is to enhance transparency and accountability in fee arrangements, ensuring that account holders are adequately informed and have the opportunity to make an informed decision about their ongoing fee agreements. This legislative instrument is a practical step towards safeguarding consumer interests in financial services by mandating clear communication and explicit consent.

Scope and Application

The ASIC Corporations (Consent to Deductions—Ongoing Fee Arrangements) Instrument 2021/124 applies to account holders and fee recipients under the Corporations Act 2001. This legislation governs the requirements for obtaining written consent from account holders to permit a fee recipient to deduct ongoing fees as part of an ongoing fee arrangement. The instrument specifies the information that must be included in the written consent to ensure that account holders are fully informed about the fee arrangements. The instrument's geographic reach is national, applying across Australia under the Commonwealth's authority. There are no exclusions or exemptions specified within the instrument itself, but it extends its application through the provisions of the Corporations Act 2001. Subordinate instruments may further refine the application or provide additional details to enhance compliance and clarity for stakeholders involved in ongoing fee arrangements.

Key Provisions

The ASIC Corporations (Consent to Deductions—Ongoing Fee Arrangements) Instrument 2021/124 sets out the requirements for account holders to provide written consent for fee recipients to deduct ongoing fees from their accounts (section 5). This consent must be in writing, either by signature or otherwise, and must include specific information (subsection 5(3)). The written consent must state the account holder's name, the fee recipient's name and contact details, an explanation for seeking consent, details about the fees (including frequency and amount), and information on how the consent can be withdrawn or varied (subsection 5(3)(a)-(h)). Additionally, the consent must be clear, concise, and effective (subsection 5(4)). The obligations imposed by the instrument are quite specific regarding the content and presentation of the written consent. The consent must be detailed and include information about the fee recipient, the ongoing fees, and the terms of the consent itself. If the written consent is combined with a fee disclosure statement, certain details can be omitted from the consent, provided the fee disclosure statement includes all necessary information and is also clear and concise (subsection 5(5)). Failure to comply with these requirements can lead to civil or criminal consequences. While the instrument does not explicitly state penalties, non-compliance with the Corporations Act 2001, under which this instrument is made, can result in penalties. For instance, misleading or deceptive conduct under section 1041H of the Act can incur civil penalties, including fines of up to $2.1 million for a corporation and up to $420,000 for an individual, as well as potential criminal penalties. Additionally, failure to provide the necessary information or to ensure the consent is in the required format could be seen as failing to comply with the Act, potentially leading to enforcement actions by ASIC.

Legal classification tags

Area of Law
Corporate Law & Governance
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
Compliance Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.