The ASIC no-action position regarding deficient written consents for ongoing fee arrangements (OFAs) expired on 5 September 2025. This relief was introduced following advocacy by the Financial Advice Association Australia (FAAA), which identified a practical issue: advisers often lacked access to account numbers at the time of advice, making it difficult to comply with written consent requirements under section 962T of the Corporations Act.
Now that the deadline has passed, AFSLs and advisers who did not rectify affected OFAs must act immediately to avoid compliance breaches and potential enforcement action.
Background: The Account Number Issue
Under the Delivering Better Financial Outcomes (DBFO) reforms, written consent must include the account number from which fees will be deducted. However, advisers often recommend products before the account is created, making it impossible to include the number in the initial consent.
The FAAA raised this issue with ASIC and Treasury, resulting in a temporary no-action position. This allowed advisers to continue receiving fees under non-compliant OFAs—but only if they corrected the issue by 5 September 2025.
For full context, watch the FAAA’s video update here:
FAAA Policy and Advocacy – Client consents and breach reporting (Aug 2025)
Next Steps for AFSLs and Advisers Who Missed the Deadline
1. Cease Fee Deductions Immediately
If a compliant OFA and written consent were not obtained by the deadline, stop deducting fees under that arrangement immediately.
2. Identify Affected Clients
Review all OFAs entered into between 10 January and 5 September 2025. Focus on those missing account numbers in the written consent.
3. Reissue OFAs and Obtain Valid Consent
For each affected client:
- Issue a new OFA.
- Obtain a new written consent that includes the correct account number.
4. Update Internal Processes
Ensure your compliance procedures:
- Require account numbers before fee deductions begin.
- Include checks for completeness of consent forms.
- Align with both ASIC and FAAA guidance.
5. Communicate Transparently with Clients
Let clients know:
- Why was their fee arrangement paused
- What steps are you taking to address the issue
- How will their services continue once compliance is restored
FAAA’s Role and Guidance
The FAAA continues to advocate for practical reforms, including:
- Adjusting the timing of consent requirements.
- Providing templates and guidance for compliant OFAs.
- Encouraging collaboration between licensees and product providers.
For detailed guidance, refer to the FAAA’s official document:
Fee Consent Account Number Issue – PDF
How AICS Can Support You
Australian Independent Compliance Solutions offers tailored services to help AFSLs navigate this transition:
- OFA audits and remediation
- Updated consent templates
- Training for advisers and support staff
- Client communication strategies
Missing the ASIC no-action deadline is a serious compliance risk—but it’s not irreversible. With the proper steps and support, AFSLs can restore compliance, protect their reputation, and continue delivering quality advice.
Need help? Contact AICS today to get back on track hello@aicsolutions.com.au
