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.
Comments
Ahhh yes this will be the answer !
Add in FASEA crazy 1 Jan implement
Off the rails we all go
Yet another change... once again, questions to be answered.. will the consumer be better off?
I can see NAB losing a lot of business. The large clients will go elsewhere & they will be left with the crap.
There will be millions of people out there soon, with no adviser. That is the consumer outcome.
It was never about the clients anyway!
Absolutely correct. If it were about the clients the issues revealed in the RC would have fixed themselves many years ago!
In their rush to exit advice of course they do not want to wait for actual regulatory outcome. By then the banks for whom the RC called for will have left leaving everyone else with the mess. Clients tossed to the curb and predominantly self employed practitioners trying to make sense of the regulatory mess.
I wish them luck as they will need it. We have been trying since June 2019 to have them amend and correct records. Very difficult to find anyone with commonsense and to get tasks done. Once this happens clients will be left floundering. They are not all going to run to an industry fund. They will be left in limbo. We have totally exited financial advisory after 15 years and time to just move on. For a small business that battle was just too costly and too big. Like every battle we are a casualty. The political agenda is not clear and truthful so all facts can be considered. Just appears that the self employed are easy fodder to get smashed. I wish the self employed best of luck, you may just want to look over the fence in the AMP paddock to see how they are being treated. As they would be using similar consultants, similar legals and similar thoughts. You may just get an idea what is about to happen.
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