DBFO Ongoing Fee Arrangement Consent in Australia 2026: What Clients Must Know About Financial Planner Obligations

If you pay ongoing fees to a financial planner in Australia, the rules governing how those fees are disclosed and consented to have changed significantly. The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 — known as the DBFO Act — introduced a new consent framework that replaces the old annual Fee Disclosure Statement requirement. Understanding these changes is essential for anyone currently engaged with a financial planner or considering entering into an ongoing advice relationship.

What Is an Ongoing Fee Arrangement?

An ongoing fee arrangement (OFA) is any arrangement between a financial planner and a retail client where the client pays fees for financial advice services over a period exceeding 12 months. These arrangements are extremely common in Australia, covering everything from annual portfolio reviews and superannuation advice to comprehensive financial planning retainers.

Under the previous regulatory framework, financial planners were required to provide clients with an annual Fee Disclosure Statement (FDS) detailing the fees charged and services provided in the preceding year. The DBFO reforms have replaced this requirement with a streamlined consent-based model that places greater emphasis on forward-looking disclosure and explicit client authorisation.

What Changed Under the DBFO Reforms

The DBFO Act commenced on 10 January 2025, with transitional arrangements applying to existing ongoing fee arrangements. The key changes that affect clients in 2026 are:

• Removal of the annual Fee Disclosure Statement — Financial planners are no longer required to provide an annual FDS. Instead, the focus shifts to obtaining explicit written consent before entering into or renewing an OFA.
• New written consent requirement — Before an OFA can commence or be renewed, the financial planner must obtain the client's written, signed, and dated consent.
• Separate consent for fee deductions — If fees are to be deducted directly from a client's financial product (such as a superannuation account or investment platform), a separate written consent is required for those deductions.
• 150-day renewal window — Once an OFA reaches its anniversary date, the planner has 150 days to obtain renewed consent. If consent is not provided within this window, the arrangement automatically terminates.
• Automatic termination on non-consent — If a client does not provide renewed consent, the OFA terminates and the planner cannot continue charging ongoing fees under that arrangement.

For clients with existing arrangements, the new rules applied from the first anniversary of their OFA that occurred on or after 10 January 2025. This means that by mid-2026, the vast majority of ongoing fee arrangements in Australia should already be operating under the new consent framework.

What Your Financial Planner Must Disclose Before You Consent

Before asking you to sign a consent document, your financial planner is legally required to provide you with specific written information. This disclosure must include:

• The planner's name and contact details — So you know exactly who is providing the advice and who is responsible for the arrangement.
• The reason consent is being sought — Whether this is a new arrangement or a renewal of an existing one.
• The services you are entitled to receive — A clear description of what advice and services will be provided during the upcoming period.
• The fees you will be charged — Either the specific dollar amount or, where this cannot be determined, a reasonable estimate and the methodology used to calculate it.
• The frequency of fee charges — Whether fees are charged monthly, quarterly, annually, or on another basis.
• Your right to terminate — A statement confirming that you can terminate the arrangement at any time.
• The consequences of not consenting — A clear statement that the arrangement will terminate if you do not provide consent, including the specific date on which termination will occur.

If fees are to be deducted from a financial product account, the consent document must also include the account holder's name and account number. This ensures you have full visibility over where your money is being drawn from.

Common Mistakes and Red Flags to Watch For

The DBFO consent framework is designed to protect clients, but it only works if both planners and clients understand their obligations. Watch for these warning signs:

• Vague service descriptions — If the consent document does not clearly specify what services you will receive, ask for clarification before signing. A general statement like "ongoing financial advice" is insufficient.
• Fee estimates without methodology — If your planner cannot give you a specific dollar amount, they must explain how the fee will be calculated. If this explanation is unclear, seek clarification.
• Pressure to sign quickly — You should have adequate time to review the consent document before signing. A planner who pressures you to sign immediately may not be acting in your best interests.
• Fees continuing after non-consent — If you have not provided renewed consent and fees are still being deducted from your account, this is a serious compliance breach. Contact ASIC or AFCA immediately.
• Conflating the old FDS with the new consent — Some planners may still be operating under old habits. The new consent document is not the same as the old FDS, and you should not be asked to sign an FDS as a substitute for the new consent process.

Australian Regulatory Context: ASIC, DBFO, and Your Protections

The DBFO reforms were developed in response to the Quality of Advice Review conducted by Michelle Levy, which found that the existing regulatory framework was overly complex and created unnecessary barriers to accessing affordable financial advice. The reforms aim to make advice more accessible while maintaining strong consumer protections.

ASIC is the primary regulator overseeing financial planners in Australia. All financial planners who provide personal advice to retail clients must hold an Australian Financial Services (AFS) licence or be an authorised representative of an AFS licensee. ASIC maintains the Financial Advisers Register, which allows consumers to verify a planner's qualifications, experience, and any disciplinary history.

Key consumer protections that remain in place under the DBFO framework include:

• Best interests duty — Financial planners must act in the best interests of their clients when providing personal advice.
• Appropriate advice obligation — Advice must be appropriate to the client's circumstances, objectives, and financial situation.
• Conflict of interest management — Planners must manage and disclose conflicts of interest that could influence their advice.
• AFCA access — Clients can lodge complaints with the Australian Financial Complaints Authority (AFCA) if they believe their planner has not met their obligations.

The Compensation Scheme of Last Resort (CSLR) also provides a safety net for consumers who have received a determination from AFCA but cannot recover compensation from their adviser due to insolvency. The CSLR levy, which funds this scheme, has been a significant topic of discussion in the advice industry in 2026.

Questions to Ask Your Financial Planner About Ongoing Fees

Whether you are entering into a new ongoing fee arrangement or renewing an existing one, these questions will help you understand exactly what you are agreeing to:

1. What specific services will I receive during the upcoming period, and how often will we meet or communicate?
2. What is the exact dollar amount of the ongoing fee, or how will it be calculated if a fixed amount cannot be provided?
3. Will fees be deducted from my superannuation account, investment platform, or bank account — and have I provided separate consent for each deduction source?
4. What happens if I want to terminate the arrangement — is there a notice period or exit fee?
5. How are you remunerated beyond the ongoing fee — do you receive any commissions, volume bonuses, or other payments from product providers?
6. Are you registered on the ASIC Financial Advisers Register, and can I verify your qualifications and any disciplinary history?
7. What is your process for reviewing my financial plan and updating advice as my circumstances change?

How MyMoney® Can Help

Choosing the right financial planner is one of the most important financial decisions you can make. The DBFO reforms have made the consent process more transparent, but the quality of advice you receive still depends heavily on the expertise, integrity, and communication style of the individual planner you work with.

MyMoney® makes it easy to find qualified, ASIC-registered financial planners who understand the new consent framework and are committed to delivering genuine value through their ongoing advice relationships. Our marketplace allows you to compare planners based on their specialisations, qualifications, and client feedback.

Post a Brief to describe your financial goals and receive tailored proposals from qualified financial planners. Or Browse Financial Planners on our platform to find a professional whose expertise matches your needs.

In an environment where regulatory standards are rising and consumer protections are strengthening, working with a financial planner who embraces transparency and genuine client-first advice is the foundation of a successful long-term financial relationship.