ASIC issues directions on Client Consent and Disclosure of Lack of Independence

AFA News 1 April 2021. On Thursday 25 March 2021, ASIC issued a media release on the new requirements with respect to Annual Renewal, Client Consent and Disclosure of Lack of Independence.

Included within the package of information released by ASIC were the following:

  • Three legislative instruments on Consent to Deductions, Disclosure of Lack of Independence, and Consent to Pass on Costs of Providing Advice.
  • A Frequently Asked Question webpage.
  • Example written consent forms for both ongoing fees and non-ongoing fees.

These documents can be accessed via the media release.

The Annual Renewal legislation commences on 1 July 2021, and it is important to understand the nature of the changes that are coming.  There will be a 12 month transition period, with not all of the obligations commencing immediately from 1 July 2021, however this date marks the start of a significant change that will impact the majority of clients, along with key systems and business processes.

The AFA will be holding a webinar on 20 April 2021 to brief members on the new Annual Renewal and Disclosure of Lack of Independence obligations.  Please ensure that you register for this webinar here and keep an eye out for any further announcements on this important reform.

For any questions on Annual Renewal, please contact [email protected].

Issued 01.04.2021. AFA Policy & Education Update