AFCA has updated its Approach to superannuation fees and charges – making a number of changes to address ‘grandfathered’ commission arrangements and updating its case studies.  

In reviewing the Approach, AFCA consulted with the Financial Services Council, Super Consumers Australia, the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA), Treasury, the Australian Institute of Superannuation Trustees (AIST), and the Association of Superannuation Funds of Australia (ASFA).    

The final revised Approach is now available on the AFCA website here and will replace prior versions.   

What has changed? 

The changes address ‘grandfathered’ commission arrangements, and acknowledge that under the Future of Financial Advice reforms to the Corporations Act 2001 (Cth) benefits and commissions given to a financial services licensee or representative under arrangements entered into before 1 July 2013 were allowed to continue until 1 January 2021. 

About the Approach 

The Approach explains that AFCA generally considers a trustee’s decision not to refund a fee or charge for access to financial advice debited to an account before 1 July 2013 is fair and reasonable, as long as the fee was permissible, the agreed or required advice service was provided, and the fee was sufficiently and meaningfully disclosed. For commissions paid before 1 January 2021 under ‘grandfathered’ arrangements, AFCA will consider if a trustee has complied with its obligations under the arrangement and the governing rules of the fund.

Sorry, we’re currently offline.

Would you like to end your chat with AFCA?

Please bear in mind that your conversation will not be saved.

AFCA chat service terms and conditions

Welcome to our live chat help service.

Please be advised we cannot provide you with financial or legal advice. However, we may be able to refer you to a community legal centre or financial counselling service if you need help.

Our live chat is operated by Genesys Cloud on behalf of AFCA. Any personal information provided in this chat will be captured by both organisations in accordance with their privacy policies, available at www.afca.org.au/privacy and www.genesys.com/company/legal/privacy-policy

Offline

We provide consumers and small businesses with fair, free and independent dispute resolution for financial complaints.

Please enter your details to start your chat with an AFCA representative.

Please enter your name
Please enter a valid email address
Please enter a valid phone number

We provide consumers and small businesses with fair, free and independent dispute resolution for financial complaints.

Welcome to our live chat help service.

An agent should be with you shortly.