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.”
Comments
CFS still insist on requiring an inhouse ongoing fee informed consent form, when even the current & proposed draft legislation doesn't even require this. They are nuts.
“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.....translation....thanks to advisers for building our member base and business, now we will cut you off the knees like all the other providers you have help build their member bases in line with KH recommendations of course.
Not sure what the issue is here. The writing has been on the wall for while. No one is cutting the adviser, just the 'banned commission'. Here's an idea - add an Adviser Service Fee and provide some 'service'. If that's such a drama, then I suggest the advice relationship wasn't sound and ongoing. Build a bridge...
Kon Flict, you wrote
"Here's an idea - add an Adviser Service Fee and provide some 'service'. If that's such a drama, then I suggest the advice relationship wasn't sound and ongoing. Build a bridge..."
Same should apply to Intra Fund Advice Fees. I see evidence these fees are any different?
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