Question

RG245 requires Financial Service Providers to issue Fee Disclosure Statements (FDS) to clients who enter into ongoing fee arrangements. How must a FSP provide FDSs to clients? Outline relevant ASIC regulatory guidelines).

Answer 1

How must an FDS be given?

RG 245.42 An FDS must be provided in writing (see s962H(1)); however, the term ‘writing’ is broadly defined under the Acts Interpretation Act 1901, and encompasses communication by facsimile, email or through a secure online facility.

RG 245.43 Therefore, we consider that the FDS can be given to the client using a range of media and technologies. For example, a fee recipient can provide a client with an FDS by: (a) giving the client a paper FDS personally; (b) sending a paper FDS to the client’s postal address; (c) sending an electronic FDS by email, either in the body of the email or through an attachment; or (d) sending correspondence with a reference to a secure online portal where the FDS can be found.

RG 245.44 We encourage fee recipients to agree to an appropriate form of communication with their clients, taking into account how their clients prefer to receive documents. We also encourage fee recipients to consider our good practice guidance in RG 221 if they deliver FDSs online.