How HostPlus increased advice fee collections eight-fold
Big hospitality industry fund, HostPlus collected comprehensive advice fees totalling just over $1.266 million last year derived from seven advisers.
What is more, the comprehensive advice fees collected by HostPlus increased eight-fold over the past five years from $148,992 from 10 advisers in 2015 to $1,266,801 in 2019.
At the same time, the fund employed around five advisers dedicated to the provision of intrafund and general advice but did not charge members for the service because the cost was covered off by an administration fee.
That is the bottom line of answers provided by the fund to the House of Representatives Standing Committee on Economics, with the fund telling the committee chairman, Victorian Liberal back-bencher, Tim Wilson that the fees charged for comprehensive personal advice were charged on a fee for service basis
“The Comprehensive Advisors generally only provide comprehensive personal advice. The intrafund advice service provided by Hostplus to its members is separately provided by Hostplus’ Intra-Fund Advisors,” the fund said. “The Intra-Fund Advisors comprise different individuals to the Comprehensive Advisors.”
“The Comprehensive Advisors are remunerated in accordance with their predetermined and set salary. Their remuneration is not determined by or linked to specific levels of advice delivery or advice fee generation.”
It said that all intra-fund advisers were licensed to provide intrafund advice within the Fund, and only provided general or intrafund advice.
“IntraFund Advisor’s remuneration is set without any reference to other sources or types of advice,” it said.
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