Fee Disclosure Statements — What Must Be Included

What Is a Fee Disclosure Statement?

A fee disclosure statement is a document your financial adviser must send you each year if you have an ongoing fee arrangement. It shows what services were provided during the year and what fees you paid. These statements were introduced under FOFA reforms to ensure clients know exactly what they are paying for.

What Must Be Included

Under Australian law, a fee disclosure statement must include a detailed description of the services you received during the year, the total amount of fees you paid (both directly and from your investments or super), and any fees charged by third parties that were arranged by your adviser. It must also include information about your right to opt out of the ongoing fee arrangement.

Your Right to Opt Out

When you receive your fee disclosure statement, you have 30 days to respond. If you do not respond, your adviser must stop charging ongoing fees. You can also choose to opt out at any time — you are not locked into an ongoing arrangement forever. If fees continue after you opt out, that may be a compliance breach.

What to Check in Your Fee Disclosure Statement

Compare the services listed against what was promised in your SOA. Check that the fees match what was disclosed when you signed up. If there are services listed that you did not receive, or fees that seem incorrect, raise this with your adviser or their licensee. You can also get an independent compliance check on your SOA and fee arrangements.

What an FDS Must Include

Under section 962G of the Corporations Act, an annual fee disclosure statement must include: the fees charged during the period (in dollar amounts), the services provided during the period, whether the services were actually provided, any other amounts deducted from your account, and a renewal notice authorising ongoing fees for the next year.

The FDS must be provided within 60 days after each anniversary of the ongoing fee arrangement. It must be in clear, plain language. If no services were provided during the period, the FDS must state this fact.

Why Fee Disclosure Matters

Fee disclosure was introduced following the Royal Commission, which found many clients were paying ongoing fees without receiving agreed services. The FDS gives you a yearly opportunity to review whether you are receiving value for your money.

Compare the FDS with your ongoing service agreement. Are all agreed services being provided? Are the fees as disclosed? If services are missing, raise this with your adviser immediately.

What to Do If You Do Not Receive Your FDS

If you do not receive your annual FDS within 60 days of the anniversary, contact your adviser. They are legally required to provide it. If they do not respond, lodge a complaint through the IDR process.

If you do not receive the FDS and renewal notice, you are not required to pay ongoing fees. The adviser cannot continue charging if the opt-in process is not followed. Report non-compliance to ASIC if necessary.

Frequently Asked Questions

What if I lost my FDS?
Contact your adviser and request a copy. They are required to keep records and must provide a copy on request.

Do I need to respond to the renewal notice?
Yes. You must sign and return the renewal notice to authorise ongoing fees for the next year. If you do not respond, fees must stop.

Can my adviser charge fees if I do not receive the FDS?
No. If the adviser does not provide the FDS and renewal notice, they cannot charge ongoing fees. The opt-in requirement must be followed.

What if I disagree with the fees shown in the FDS?
Raise your concerns with your adviser. If the issue is not resolved, lodge a complaint through the IDR process. You have the right to dispute fees.

What Financial Advice Costs in Australia

Understanding typical advice fees helps you evaluate whether your adviser's charges are reasonable. Recent industry data provides clear benchmarks:

Fee Type	Typical Amount	Trend
Annual ongoing advice fee	$4,700 – $4,800 (median)	Up 67% over 5 years, but growth slowing to ~4%
Initial SOA / plan fee	$2,000 – $3,500	Varies by complexity
Hourly rate	$300 – $600 per hour	Higher for specialist advice
Funds under advice (FUA) fee	0.5% – 1.1% of balance	Average FUA: $758,000
Top 20% profitable practices	Nearly double median	Higher fees = leaner cost-to-serve models

Despite 68% of Australians seeing the benefit of professional financial advice, only 6% are willing to pay more than $2,500 for it. This gap between perceived value and willingness to pay is a key reason why regulatory reforms (DBFO, QAR) aim to reduce the cost of advice delivery.

If your adviser's fees are significantly above these benchmarks, ask for a clear breakdown of what you're receiving for the premium. Your SOA must disclose all fees and charges under FOFA requirements.

Sources: Adviser Ratings Australian Financial Advice Landscape 2025, Vanguard Adviser Best Practice Guide 2025, Investment Trends Adviser Business Model Report 2025.