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National Australia Bank subsidiary Godfrey Pembroke has announced it will transition to a holistic fee-for-advice business model for its entire client base as part of its growth strategy in the private advisory market.
Godfrey Pembroke moved to a fee-for-advice model in 2006 for all new investment and superannuation clients. The company said it intends to build on this position and remove commissions for all investments and superannuation clients, as well as for new clients seeking insurance and mortgage advice.
“We are seeing significant demand in the private advisory market for a 100 per cent fee-for-advice proposition,” said the general manager of Godfrey Pembroke, Tom Reddacliff.
“We were one of the first advice groups to move to a fee-for-advice model for new clients back in 2006 and we received an extremely positive response from clients at that time. We expect this next move to position us for even further growth in the private advisory market.”
Godfrey Pembroke is implementing a fee-for-advice transition program to assist advisers to make the necessary changes within their businesses over the next 18 months, Reddacliff said. The transition program will also be made available to new businesses joining Godfrey Pembroke in the future.
“Our goal is to be a 100 per cent fee-for-advice network on super and investments by 1 October 2011. We are still working through our target date for insurance and mortgage products but we are making a clear commitment to our clients that this is the direction we are heading in and we will deliver on this promise,” Reddacliff said.
