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
ASIC has banned a former financial adviser for his role in encouraging clients to invest their retirement money in the Global Capital Property Fund, run by United Global Capital.
With reporting season concluded for another financial year, Money Management rounds up the result of Australia’s listed advice licensees and where they are looking to in the year ahead.
Having acquired Evidentia with the goal of building out its managed accounts division, GDG has reported a 49 per cent rise in managed account funds under management in FY25.
The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted.