ASIC’s Limited No-Action Position on Deficient Written Consent Forms

ASIC’s Limited No-Action Position on Deficient Written Consent Forms

Overview

On 6 June 2025, ASIC announced a limited no-action position regarding certain deficiencies in written consents for ongoing fee deductions. The relief applies to written consents given by clients under section 962S of the Corporations Act; i.e. the consent form signed by clients to authorise the deduction of fees from their investment or superannuation platform (a form that is typically prepared by the product provider).

Scope of ASIC’s no-action position

The scope of ASIC’s no-action position is limited to the following circumstances:

1. applying only to written consents given by a client to deduct fees from their platform(s) from 10 January 2025 to 5 September 2025; and

2. the account number was omitted from the client’s written consent.

The no-action position is to address instances when fees are to be deducted, or were deducted, from a new account that was recommended to the client which at the time of signing the consent was yet to be established. Thus, the circumstances giving rise to the missing account number.

The ASIC no-action position does not apply if the written consent is deficient in any other way (e.g. wrong fees were disclosed or omission of mandatory disclosure statements).

What does this mean?

ASIC will not take regulatory action against AFS licensees for deducting fees under written consents that did not include the client’s account number until 5 September 2025. In the meantime, licensees must:

1. enter into a new OFA with the affected client; and

2. seek a new written consent for the fee recipient to deduct or arrange to deduct ongoing fees, including to cover the period where any fees were deducted under a non-compliant written consent.

What should licensees do?

1. Create a list of affected clients.

2. Enter into a new OFA with the affected client and seek a new written consent to deduct fees, which complies with the content requirements in section 962T. The period to be covered in the consent form should include the period where fees were deducted under a non-compliant form.

3. Contact the product providers you deal with to determine if you can streamline the process of seeking the client’s consent to deduct fees from a new account (i.e. how quickly can you obtain a new account number).

4. Revise your internal process and communicate the new process to representatives.

If you do not have a compliant written consent from affected clients by 5 September 2025, you must stop receiving fees under those ongoing fee arrangements.

This relief is temporary and ceases on 5 September 2025. The ASIC relief does not prevent third parties from taking legal action against you or the OFAs from terminating due to non-compliance.

Please email consultant@licenseesolutions.com.au if you require further information or guidance.

24 July 2025

Please note this is a summary of the law, and you should obtain professional advice in relation to your own circumstances.