We've built a new Digital Fee Form (DFF) which will soon be available in Adviser Online for you to use with your clients.
We’ve built this new digital tool to help you manage one of the new legislative requirements effective 1 July 2021, which requires you to obtain client consent for some of the advice fees charged on your clients accounts.
To find out more about the new legislation, please visit the ASIC website.
Ongoing adviser service fees set up before 1 July 2021 will be paid until 1 July 2022. This means there’s no change for existing clients paying an ongoing service fee. The DFF can be completed for these clients at any time from 1 July 2021.
Collecting your client’s fee consent digitally
We want to make it easy for you to engage with your clients on this topic and ensure the consent to your fees can be done with minimal disruption.
Watch the video below to see how the DFF will work.
Features and benefits of the DFF:
- Populate an online form which sets out the fees you’ll chargein the next 12 months.
- Email it directly to your clients for online approval and immediate processing (or via PDF with a wet or digital signature and upload to your online application portal.
- Use the DFF instead of the paper ‘Change of Fees Form’ which was previously required to add/change advice fees for super, pension or IDPS accounts.
- Charge ongoing, fixed term (up to 12 months) or one-off advice fees
- Use a new fee type called a ‘fixed term fee’ which is a monthly payment for up to 12 months. The advice fee will stop being paid at the end of the fixed term period and a new DFF can be completed.
Key dates and changes
- By 1 July 2021: New Digital Fee Form is live
- Any new advice fee requests you issue will need to be via the DFF.
- The current paper-based ‘Change of Fees Form’ won’t be accepted, unless signed by your client/s prior to this date.
- You’ll be able to capture Advice Fee Consent requirements in the Fees section of our online product application forms, so you won’t need to complete a product application form and the DFF for new applications.
- Please ensure your client’s details are up-to-date, including their email and mobile number, so they can accept and approve this form.
- The enhanced online application form incorporates the new regulatory requirements which enables your clients to digitally consent to the adviser service fees and agree to the product terms and conditions at the same time.
- By 1 July 2021: Changes to fees you can charge
- With the introduction of the DFF, the capability to charge dealer service fees or contribution or rollover-based advice fees will no longer be available.
- Existing contribution advice fees, rollover advice fees and dealer service fees are currently being reviewed and will end no later than 30 June 2022.
- From 1 July 2021: New legislation comes into effect
- The new legislation comes into effect and you’re required to obtain client consent for some of the advice fees charged on your clients accounts.
- Find out more about the new legislation on the ASIC website.
How does this impact Fee Disclosure Statement (FDS)?
- From 1 July 2021, we’re renaming the Fee Disclosure Statement templates currently available on the adviser portal to the ‘Client Fee Report’ as this template will no longer comply with the requirements of a Fee Disclosure Statement.
- The Digital Fee Form doesn’t replace the existing FDS, and you’ll still need to manage this process separately and provide this to clients where there is an ongoing fee arrangement in place.
- Where you’re required to issue an FDS, you can tailor the start and end date of your fee consent period to align with your annual review and FDS process.
Getting your clients ready for this change
We’ll produce a number of resources including user guides and short videos, which you can use with your clients to help them understand what these changes are and how it will affect them. You’ll be able to access these resources online by 1 July 2021.
Please note we aren’t contacting your clients directly about the DFF or about the incoming requirement for their fee consent to be collected under the new legislation.
If you have any questions, please contact your relationship manager.