On 12 October, ASIC announced a review of compliance with requirements for Fee Disclosure Statements and Renewal Notices in the financial advice sector.

ASIC states that it has received a number of breach reports from licensees which indicate they may have failed to comply with the Fee Disclosure Statement (FDS) and Renewal Notice requirements that were implemented as part of the Future of Financial Advice (FOFA) reforms in 2013, and that ASIC is investigating these reports and will take enforcement action where breaches are substantiated.

ASIC states that it will examine to what extent advice licensees:

  • issue FDSs and Renewal Notices to customers;
  • issue FDSs and Renewal Notices within the time frames set out by the law;
  • include the required content in the FDSs;
  • ensure the content of FDSs is accurate, for example, in describing what customers are charged for and what services customers have received;
  • have appropriate procedures in place to ensure fees for ongoing services are discontinued when the arrangements are terminated as a result of licensees failing to comply with the FDS or Renewal Notice requirements.