ARTICLE · 20 NOVEMBER 2013

Future of financial advice series: Opt-in and fee disclosure

DLA Piper Australia

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Opt-in and fee disclosure is a two yearly opt-in arrangement and annual fee disclosure for clients paying ongoing fees.

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This update is intended as a general overview, targeted specifically at claims officers and underwriters of insurers of professionals required to comply with the Future of Financial Advice (FOFA) reforms.

WHAT IS IT?

Opt-in and fee disclosure is a two yearly opt-in arrangement and annual fee disclosure statement for clients paying ongoing fees. For each client paying ongoing fees, being fees that continue for longer than 12 months, financial advisers are now required to:

give each client an annual statement disclosing the fees that the client has paid and the services they have received (the fee disclosure requirement); and
send a renewal notice every two years and receive the consent of each client to continue charging them (the opt-in requirement).

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