The Government has announced that the passage of the Financial Sector Reform (Hayne Royal Commission Response No.2) Bill 2020 will further protect Australian households from hidden fees and unexpected expenses. Read more below...
Under this legislation, clients of financial advisers will receive and annual, forward-looking summary of fees and corresponding services, in addition to existing disclosure.Advisers will need to obtain written consent prior to deducting fees.
These changes compliment the introduction of a new disclosure obligation that requires financial advisers who are not independent of product providers to provide their clients with a clear and concise written disclaimer.
The legislation will also prohibit the deduction of ongoing advice fees from MySuper
products and increase the transparency of fees to members.