Account number issue causes angst, undue admin work

Consent forms missing an account number has resulted in advisers submitting a substantial number of reportable situations to ASIC that can be considered as a breach report, FAAA general manager of policy, advocacy and standards Phil Anderson said.

- Karren Vergara

Under DBFO Tranche 1, the Fee Disclosure Statement obligation was removed, and multiple consent form obligations were combined. This included the need to comply with the obligation to obtain consent to continue an Ongoing Fee Arrangement (opt-in or renewal) and obtain consent for a fee to be deducted from a product account.

"The goal was to simplify this regime and to streamline it. In practice, that has not been achieved and we now have duplication of forms and confusion. The legislative complications, such as the need to include an account number on a fee consent form for enabling the deduction of a fee from a product, even for new accounts, is a flaw in the law that has caused a significant regulatory burden for all parties," Anderson said.