Macquarie has announced that its wealth arm will switch off all grandfathered commissions next year, following a similar announcement from BT Financial Group last month after the controversial payment structure came under fire during the Royal Commission.
All grandfathered commissions paid to Macquarie Private Wealth and Macquarie Private Bank advisers would be turned off from 1 April, 2019, affecting an estimated 17,000 client accounts.
"The decision to discontinue grandfathered product commissions is part of our continued business transformation and in order to further increase transparency and demonstrate value to our clients," Macquarie said.
It was unclear whether commissions paid by product advisers would be sent customers’ way, however.
Independent financial advisers receiving grandfathered commissions through the bank’s wealth third-party channels would not see those arrangements end following this announcement.