Colonial rejigs agency offer to Matrix Planning
ColonialGroup is redrafting a proposed new agency agreement with Sydney-based dealer groupMatrix Planning Solutionsfollowing the latter raising concerns that the new arrangement was significantly inferior to the previous contract.
Colonial had to revise its position in relation to a clause in the new agency agreement with Matrix after the planning group failed to sign the new contract and hinted it may not continue to recommend Colonial life products as a result.
The offending clause would have meant that renewal and asset commissions to life agents would no longer be payable upon termination of the broker agreement, in contrast to the previous agreement signed under the oldAgents and Brokers Actthat guaranteed these ongoing entitlements would be paid.
In light of Matrix’s concerns, Colonial said it would redraft the new agreement to mirror the old one, though as yet it is unclear if this redraft applies only to Matrix or to the entire industry.
Matrix Planning Solutions’ Robert Ross says the immediate effect, had it signed the proposal, would have been to remove the value to the business under the existing contract.
TheAssociation of Financial Adviserswill warn its members to be wary of new agreements between dealers and product manufacturers.
The new agreement has been drafted by Colonial as part of the transition to the Financial Services Reform Act.
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