This is Information Sheet 287 (INFO 287). It answers frequently asked questions (FAQs) for financial advisers who must get a client’s written request or consent to charge non-ongoing fees to a client’s superannuation account.
Note: The guidance in this information sheet has been developed in response to amendments of obligations relating to non-ongoing fee requests or consents made in Schedule 1 of the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024. It applies to written requests or consents to charge fees under non-ongoing fee arrangements:
entered into on or after 10 January 2025 (start day), and
already in force on the start day, after the arrangement is terminated, renewed or varied, or from 12 months after the start day (whichever is earlier).
Superannuation trustees must have a member’s written request or consent, or a copy of the request or consent, before they charge advice fees (non-ongoing fees) under an arrangement that is not an ongoing fee arrangement (non-ongoing fee arrangement) to a member’s superannuation account. General advice costs cannot be charged to a member’s superannuation account under a fee arrangement (see Question 4) and the personal advice costs charged need to be consistent with the sole purpose test.
For more detailed guidance on these and related issues, including an ASIC report and letters from ASIC and APRA, see Where can I get more information? at the end of this information sheet.
Note: For the purposes of these FAQs we assume that the advice provider will arrange for the request or consent to be signed by the member and will provide the signed request or consent, or a copy of it, to the superannuation trustee.
1. When do I have to get a written request or consent?
You will need to get a superannuation fund member’s written request or consent to charge fees under a non-ongoing fee arrangement to the member’s superannuation account. This is because superannuation trustees must have a member’s written request or consent, or a copy of the request or consent, before they charge non-ongoing fees to the member’s account.
The written request or consent must meet the requirements in section 99FA(2) of the Superannuation Industry (Supervision) Act 1993 (SIS Act): see Question 2.
A member’s written request or consent does not become invalid if their name changes after the member has provided their request or consent (e.g. because the member has legally changed their name after getting married). Likewise, any change to an advice provider’s details after a member has provided their written request or consent (e.g. following the sale of an advice business) does not cause the request or consent to become invalid, provided the arrangement remains the same in all other respects.
ASIC considers that as part of any change in financial product advice provider, a member should be notified of the change by both the existing advice provider and the new provider. The relevant communications should be clear, concise and effective, and remind the member that they may withdraw their request or consent at any time before the fee is charged to their superannuation account by contacting the fund.
2. What information must be included in the written request or consent?
The written request or consent from a member must contain, as a minimum, the following required information:
the name and contact details of the member
the name and contact details of the advice provider
the name of the superannuation fund from which the non-ongoing fees are requested to be paid
a brief description of the services the member is entitled to receive under the arrangement
the amount to be paid for the advice received
the amount to be charged against the member’s interest in the fund
a request from, or consent by, the member for the non-ongoing fees to be paid by the superannuation trustee and charged against the member’s interest in the fund
the member’s signature, and
the date the request is made or consent given: see section 99FA(2) of the SIS Act.
If the amount to be paid, or the amount to be charged, cannot be determined at the time the request is made, or the consent is given, the written request or consent must include a reasonable estimate of the amount and an explanation of the method used to work out the estimate.
In order to achieve its purpose, the written request or consent should be worded and presented in a clear, concise and effective manner.
Note: The Minister has the power to approve a form for the written request or consent: see section 99FA(3) of the SIS Act. However, no form has currently been approved for this purpose.
3. If I provide a member’s written request or consent to their superannuation fund, or a copy of the request or consent, is the fund required to charge the fee?
A superannuation trustee is not required to charge a fee to a member’s superannuation account under a non-ongoing fee arrangement when provided with the member’s written request or consent, or a copy of the request or consent, even if all the requirements in section 99FA(1) of the SIS Act are met. This is because superannuation trustees may decide whether to charge the non-ongoing fee to the member’s superannuation account.
Superannuation trustees cannot charge advice fees (other than fees for intra-fund advice) to a member’s superannuation account unless:
the fee relates to financial product advice that is personal advice (see Question 4)
the fee is charged in accordance with the terms of the written request or consent, and
the trustee has the written request or consent, or a copy of it, and it meets the requirements in section 99FA(2) of the SIS Act (see Question 2).
4. What are personal advice costs?
A superannuation trustee can only charge personal advice costs to a member’s superannuation account under a fee arrangement. ASIC recognises that the provision of personal advice may involve a package of services, such as assistance with advice implementation and a regular newsletter on investments.
ASIC considers costs to be personal advice costs if there is a direct nexus between them and the personal advice provided to a member. For example, a regular newsletter on investments that is only provided to current personal advice clients is likely to fall within this category. We expect advisers to exercise judgement and keep records of how they determine what is a personal advice cost.
5. Can a written request or consent for signing be provided to the member with other information?
Yes. A written request or consent for signing may be provided to the member with other information. For example, an advice provider may meet the requirement to provide information about services by attaching an extract from the relevant Statement of Advice to the request or consent.
You may also use one document to deal with a member’s written request or consent to charge non-ongoing fees to multiple superannuation accounts. The document must state the amounts to be charged to each superannuation account and include details of the superannuation accounts. The member must provide a written request or consent for each account to be charged non-ongoing fees.
If the client holds accounts with multiple third-party account providers, you should consider your privacy obligations when passing on confidential information in the written request or consent to different account providers, and seek independent legal advice if necessary.
6. Can the written request or consent be provided electronically?
Yes. The written request or consent may be given electronically (e.g. by email or on a secure webpage).
The member can also sign the written request or consent electronically.
The member can provide an electronic request or consent in different ways. For example, the member could tick a box on a webpage in response to a statement like: ‘By ticking the box, you consent to $XX being charged to your superannuation account’.
For information about electronic signatures, see Electronic signatures on the federal Attorney-General’s Department website.
7. Does the written request or consent have to state the date when the request is made or the consent is given?
Yes. The written request or consent must include the date on which the request is made, or the consent is given, by the member. This could be done by including a section for the member to provide the date of the request or consent, or by timestamping any electronic request or consent.
Please note that this information sheet is a summary giving you basic information about a particular topic. It does not cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice. We encourage you to seek your own professional advice to find out how the applicable laws apply to you, as it is your responsibility to determine your obligations.
You should also note that because this information sheet avoids legal language wherever possible, it might include some generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases, your particular circumstances must be taken into account when determining how the law applies to you.
Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.
This information sheet was issued in October 2024.
