Question

Identify and explain key elements of RG245 that AFS licencees and representatives must consider when entering into ongoing fee arrangements.

Answer 1

Answer-

The key elements of RG 245 that AFS  licencees and representatives must consider when entering into ongoing fee arrangements are

Fee disclosure statement (FDS) obligation in Div 3 of pt 7.7A of the corporation act

To provide the guidance on certain Fee disclosure statement ( FDS) obligations

Who must give or issue an FDS

How to prepare an FDS taking into consideration all the obligations.

How and when an FDS must be given or issued

In addition to isuing  an FDS, other fee and remuneration disclosures and conduct obligations are applicable to the representative or adviser of the licences. This disclosure includes the information provided in financial services guide and statement of advice that are issued.