Macquarie to also dump grandfathering
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.
AUTHOR
Hannah Wootton
Recommended for you
AZ NGA has entered into a strategic partnership with national advice firm MiQ Private Wealth, as a way to provide a succession solution, as well as career development opportunities for staff.
While the advice profession struggles under growing operating costs, Adviser Ratings has found more than half of practices – some 58 per cent – that generate less than $250,000 in revenue report no profit at all.
The Federal Court has ordered the freezing of assets and the appointment of receivers to two entities linked to Australian Fiduciaries, ASIC’s latest move in an ongoing investigation into the company’s managed investment schemes.
Off the back of the August adviser exam results, the profession has seen 17 new entrants hit the Financial Adviser Register (FAR) this week, helping numbers return to positive territory.
