National Australia Bank (NAB) has confirmed it will be transitioning self-employed advisers to annual fee agreements in the first half of next year.
In an outline of its responses to the Royal Commission released alongside its full-year results, the big banking group said that it agreed with the Royal Commission’s recommendations around annual renewal and payment and that by 1 April, next year NAB Financial Planning advisers would no longer have ongoing fee arrangements.
It said this meant that all clients would soon be on 12-month contracts that recorded in writing the services the client would be entitled to receive and the fees that they are charged.
“NAB has also announced its intention to support a transition to annual fee arrangements for self-employed advisers ahead of legislation requiring this,” the announcement said.
It said it was aiming to start implementation of the arrangement with respect to self-employed advisers in the first half of next year.
The bank also noted that it had already removed grandfathered commissions on MLC Wealth superannuation and investment products for NAB Financial Planning employed advisers.