Colonial First State (CFS) will end Adviser Services Fees within its superannuation funds unless clients opt-in, motivated in large part by the joint letter sent by the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) earlier this year.
CFS has written to advisers informing them that it will be contacting members of the superannuation in early December asking them to confirm their willingness to continue having fees deducted from their superannuation and pension accounts.
The Association of Financial Advisers chief executive, Phil Kewin, expressed concern at the impact of the joint letter from the regulators had prompted the CFS move.
The CFS letter said that from 2 December the firm would be contacting superannuation fund members who had an ongoing Adviser Service Fee (ASF) deducted from their account for 12 months or longer.
However, it said that from 23 October it would be contacting advisers with a list of their impacted clients to help them prepare.
“If we receive a completed Adviser Service Fee and Adviser Trail Rebate Nomination form from a member before 20 November, 2019, this will be sufficient confirmation to the trustee that the member is aware of the advice fees they pay from their account and we won’t seek an additional authorisation,” it said.
“We’ll provide advisers a copy of the member communications in the week commencing 18 November, 2019.”
The CFS documentation said that superannuation fund members would receive a letter, authority form and information sheet and then have 90 days (with reminders at 30 and 60 days) from the date of the letter.