Annual Renewal Legislation Passes in the Lower House
AFA News 18 February 2021. On Monday 15 February 2021, The House of Representatives debated and passed the Financial Sector Reform (Hayne Royal Commission Response No. 2) Bill 2020 without amendment. This is the Bill that includes the move to an Annual Renewal model for all ongoing fee arrangement clients, the disclosure of lack of independence and restrictions on the payment of fees out of superannuation funds.
The AFA has been advocating for sensible changes to the requirements for Annual Renewal. We have put these proposals to the Minister and other politicians. Whilst we recognise that a move to annual renewal will materially increase the cost of maintaining an ongoing fee arrangement, we are also conscious that there is little appetite for debate or amendment to the Royal Commission recommendations. Our proposed changes would not have undermined the intent of the legislation, but instead improve the way that it would work by providing increased flexibility and certainty for clients. We also wanted to ensure that the legislation addressed the current issue with timing, GST/RITC and small differences in FDSs.
The Bill was also introduced to the Senate on Monday 15 February 2021 and is expected to be debated in the Senate this week or next. We have continued to advocate for the Senate to consider our sensible proposals. Please click here to track the progress of this Bill.
Please click here to see the previous message from the AFA on the Annual Renewal requirements and the changes that the AFA is seeking.
Please contact firstname.lastname@example.org for any questions on this matter.
Issued 18.02.2021. AFA Policy & Education Update