CFS moves on grandfathering and insurance commissions
Colonial First State has announced fee changes to advice clients and superannuation fund members as part of its removal of grandfathered conflicted remuneration and insurance-related commissions.
The changes will see insurance commissions removed from legacy superannuation and pension retail products and will take effect from 1 June, this year.
It said it would also be making changes to FirstChoice Employer Super with legacy investment options being closed and members’ investments transferred to corresponding options in an open investment member with grandfathered adviser commission payments ceasing.
Where FirstWrap and Beacon products were concerned, the removal of transaction fees and advice fees will be removed from listed security trades and conflicted remuneration and insurance commissions will also be removed from these products.
Commenting on the move, CFS general manager of product and marketing, Kelly Power said that the changes were part of CFS’ commitment to putting members’ interests first and helping to create a better super system.
“This is a great outcome for our members – we know lowering fees will benefit retirement saving outcomes. However, we recognise this is an adjustment for many advisers and we’re committed to providing early notice and supporting them to help navigate and prepare for the changes ahead,” she said.
“We remain a strong advocate for quality financial advice and support the role that financial advice plays in helping Australians achieve financial wellbeing.”
Recommended for you
The Financial Advice Association Australia has appealed to licensees to urgently update their FAR records as hundreds of advisers are set to depart by the end of the year.
Demand for robo-advice tools is rising, a report has shown, but this is occurring simultaneously with rising demand for professional face-to-face advice.
ASIC has released the results of the latest financial adviser exam, held in November 2025.
Winners have been announced for this year's ifa Excellence Awards, hosted by Money Management's sister brand ifa.
