Consent Requirements under Ongoing Fee Arrangements (OFA) simplified from 10 January 2025

The process for renewing Ongoing Fee Arrangements (OFA) has been simplified. These changes will commence on 10 January 2025.

Fee disclosure statement not required

Financial advisers no longer need to provide a Fee Disclosure Statement (FDS) to the client.

Consent Requirements under OFA

However, financial advisers will still need to obtain client consent to renew an OFA and to deduct fees from accounts (consent for both can be given in a single notice or form). The client consent must meet the new requirements listed in sections 962G and 962T of the Corporations Act – these requirements are explained here.

While consent continues to be required at least annually, there is now more flexibility in terms of the timing of renewing consent. The financial adviser and client can agree on a reference date for determining when the renewal starts. Consent can be given anytime between 60 days before and 150 days after the reference date specified in the consent (or if