Annual Renewal Legislation Commences 1 July 2021
AFA News 15 April 2021. We have previously reported to members that the new Annual Renewal regime starts on 1 July 2021, however it is subject to a 12 month transition period and that licensees need to be aware of the new requirements and to prepare their strategy for the transition year.
The AFA will be holding a member webinar on 20 April 2021 to work through all the changes in detail and to set out the transition requirements and the likely implications of the new requirements.
We have invited members to send in any questions prior to the webinar to ensure that we address the key questions.
Whilst ASIC have issued legislative instruments on the requirements with client consent forms, they are yet to issue any detailed guidance on the new FDS obligations.
Some of the questions that we have received so far relate to obligations to refund fees in the event that the client fails to renew before the 120-day deadline after the anniversary day. It is important to appreciate that where a client fails to renew, advisers will have up to 150 days after the anniversary day to turn the fees off and that there is no obligation to refund fees that have been paid since the anniversary day, unless you have failed to deliver any services that were committed to being provided in that 150-day period. We will address this issue in the webinar and will also address the important considerations of what is an ongoing fee arrangement, when do services need to be provided and when do the FDS obligations apply.
Please forward your questions to email@example.com and join us for the webinar on 20 April 2021.
Issued 15.04.2021. AFA Policy & Education Update