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This is happening right now.
The product providers under the guise of Trustee responsibility are proactively contacting adviser's clients and seeking to influence the client into thinking the product they may already be in may not be the most suitable product and to consider instigating a change !
It needs to be clarified that several major product providers have already been doing this recently and openly state
" you may also wish to explore alternative products that WE offer".
One large provider states in a letter to adviser's clients in reference to the recommendations from the Royal Commission that " it is expected to be made law soon " and that " The Trustee also supports the INTENT of the recommendation"......
This provider has written to adviser's clients requesting the client complete a Confirmation of Ongoing Advice Fee form
approving advice fees to be paid for the coming financial year ( ie Opt In Notice) FROM THE PRODUCT PROVIDER !!
So the law regarding grandfathered commission payments has not yet been changed, it is the adviser's responsibility to issue FDS and Opt In Notices and now we have product providers acting on an EXPECTATION and INTENT in relation to potential law changes and taking matters into their own hands.
This particular provider states " It is now a requirement of the Trustee to have your written authority to pay these fees to your adviser".
The product provider would already have the original authority from the client to pay the ongoing fee.
Isn't it a requirement for the ADVISER to have receipt of the completed Opt In Notice from a client to continue receiving the fee payment???
It is blatantly obvious that many of the large product providers who are not delivering any advice service at all and are merely the product manufacturer and administrator are taking on the requirements of the adviser and manipulating the client.