The Financial Planning Association (FPA) says common sense prevails in most of the Australian Securities and Investments Commission’s (ASIC) new fee disclosure obligations – but it remains concerned about fee statements for existing clients.

CEO Mark Rantall says the obligations in Regulatory Guide 245, which apply from July 1, are “pragmatic”, but more work is needed on the requirement regarding ongoing arrangements.

“This obligation is cumbersome and creates costly duplication, and we would argue for further discussion and a quick resolution to the downside consequences of this approach in its current form,” he said.

ASIC says advisers receiving fees for giving personal advice under an ongoing arrangement with a retail client must provide an annual fee disclosure statement with information on fees, services provided and services the client is entitled to receive.

It says this is designed to help clients determine whether ongoing fees are proportionate to the services they have received.

Mr Rantall says the FPA welcomes ASIC’s approach to “no action” clauses in RG245 as a pragmatic approach to resolving non-compliance when planners are unable to meet obligations through no fault of their own.