OnePath has written to advisers informing that it will be switching off adviser service fees (ASFs) on Integra Employer and Personal accounts and from the accounts of members with a direct ongoing arrangement with a financial adviser.
In a communication to advisers sent yesterday (Wednesday), OnePath Custodians Pty Ltd said that the decision to switch off the ASFs was consistent with the Government’s legislation and had followed the company “actively reviewing and targeting ways to better support advisers moving to a fee for service arrangement with their clients, while achieving the best outcome for members”.
It noted that ASFs were deducted from members accounts half yearly in advance in January and July each year and that the ASF would be calculated from 1 July, 2020, to the date the ASF was cancelled, effective 31 December, 2020.
The communication to advisers said that they might care to discuss the change with clients and that “if a member of Integra Super would like to engage your services, you can establish a personal advice fee”.
It noted that a personal advice fee was a one-off dollar-based fee that can be negotiated with your client and was deducted from your client’s account balance the month after the fee is agreed.
In a separate document sent to advisers, OnePath referenced the ending of grandfathered commissions including commissions attaching to group insurance policies but added that individual risk only products such as the OneCare range of insurance products were not impacted.
