The Australian Securities and Investments Commission (ASIC) intends to review financial services licensees’ non-compliance with renewal notices and fee disclosure statements.

The regulator has received a number of breach reports from licensees, indicating they may have failed to comply with requirements implemented as part of the Future of Financial Advice reforms five years ago.

There is a significant risk of systemic non-compliance with the requirements, it says.

Renewal notices are meant to ensure clients opt in before ongoing fees are charged, reducing the likelihood of disengaged customers being charged.

The big four banks have faced criticism during the Hayne royal commission for charging fees for no service. ASIC has overseen remediation programs in which licensees have paid $259.56 million in compensation.

ASIC will investigate to what extent advice businesses issue fee statements and renewal notices within set timeframes, whether they include the required content and the accuracy of that content.

It will also investigate whether licensees have appropriate procedures for ensuring fees for ongoing services are discontinued when arrangements are terminated as a result of the licensee failing to comply with the requirements.

ASIC will present its findings next year.