Bill
Financial Sector Reform (Hayne Royal Commission Response No. 2) Bill 2020
passed, as at 2021-03-02. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2020-12-09
- second reading — 2020-12-09
- second reading — 2021-02-15
- second reading — 2021-02-15
- third reading — 2021-02-15
- introduced — 2021-02-15
- second reading — 2021-02-15
- second reading — 2021-02-25
- second reading — 2021-02-25
- committee — 2021-02-25
- third reading — 2021-02-25
- passed — 2021-02-25
- royal assent — 2021-03-02
Divisions
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2020-12-09.
The bill would stop financial firms from charging clients ongoing fees for services they do not use or know about.
It would require firms to ask clients each year if they want to keep paying, tell them the total fee in writing, and get their signed permission before taking money from their account.
The changes apply only to ongoing fee arrangements under the Corporations Act, with no start date or exemption mentioned in the outline.
- Financial service providers must get annual renewal from clients for ongoing fee arrangements.
- Providers must give clients a written statement of the total fees to be charged.
- Providers must obtain written consent before deducting any ongoing fee from a client's account.
Clients with ongoing fee arrangements and the financial service providers who charge those fees.
Sources
em
billhome
frl act