Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 962R

  (1)   This section applies if:

  (a)   an ongoing fee is, or will be, payable to a fee recipient under an ongoing fee arrangement; and

  (b)   a person (the account holder ) holds an account with the fee recipient; and

  (c)   the account is not:

  (i)   an account linked to a credit card; or

  (ii)   a basic deposit product; and

  (d)   the fee recipient proposes to deduct the amount of the ongoing fee from the account holder's account.

  (2)   Subject to subsection   (3), the fee recipient must not deduct the amount of the ongoing fee from the account unless all of the following are satisfied:

  (a)   the account holder has given the fee recipient written consent for the fee recipient to deduct amounts from the account in respect of ongoing fees under the ongoing fee arrangement;

  (b)   if requirements that apply in relation to the consent are determined under section   962T--the consent complies with those requirements;

  (c)   at the time of making the deduction:

  (i)   the consent has not been withdrawn under paragraph   962U(1)(a); and

  (ii)   if the consent has been varied under paragraph   962U(1)(b)--the consent as varied still allows for the deduction to be made; and

  (iii)   the consent has not ceased to have effect under section   962V.

  (3)   If the account holder holds the account jointly with one or more other persons, the fee recipient must not deduct the amount of the ongoing fee from the account unless all of the paragraphs in subsection   (2) are satisfied in relation to the account holder as well as each of those other persons as account holders.

  (4)   A person contravenes this subsection if the person contravenes subsection   (2) or (3).

Note:   This subsection is a civil penalty provision (see section   1317E).