In this Funds Update for 18 October 2024:
- New ASIC guidance for advisers relating to non-ongoing and ongoing fee arrangements
- ASIC issues 2023-24 update on licensing and professional registration activities
New ASIC guidance for advisers relating to non-ongoing and ongoing fee arrangements
On 16 October 2024, ASIC issued new guidance (INFO 286 and INFO 287) and updated previous guidance (INFO 256 and INFO 280) in response to amendments of obligations relating to:
- ongoing fee arrangements or consents. These changes apply to:
- ongoing fee arrangements entered into on or after 10 January 2025 (start date); and
- arrangements already in force on the start date, from the first anniversary of the arrangement that occurs after the start date.
- non-ongoing fee requests or consents. These changes apply to written requests or consents to charge fees under non-ongoing fee arrangements:
- entered into on or after the start date, and
- already in force on the start date, after the arrangement is terminated, renewed or varied, or from 12 months after the start date (whichever is earlier).
The changes are made in Schedule 1 of the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024.
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ASIC issues 2023-24 update on licensing and professional registration activities
On 11 October 2024, ASIC released Report 797 on its licensing and professional registration activities from the 2023–24 financial year. The Report confirms that ASIC continues to apply a risk-based approach to Australian financial services licence (AFSL) application assessments, by devoting more resources and time to assessing complex and higher risk applications.
Under ASIC’s service charter, ASIC aims to decide 70% of AFSL and credit licence applications within 150 days of receiving a complete application, and within 240 days in 90% of cases. In assessing AFSL and credit licence applications, the Report states that ASIC met eight of its nine metrics, and in relation to the ninth service charter metric that ASIC missed (in relation to AFSL variation applications) ASIC achieved 89% against the objective of 90% within 240 days.
You can read the full Report here.
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Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.