Colonial First State (CFS) was prepared to pay its advisers a one-off consultation fee up to the value of $750 to assist them with re-engaging with clients to whom grandfathered commissions were attached.
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was told that advisers had been warned in late 2015 that CFS was ceasing grandfathered payments on super to pension transfers and pension consolidations that occurred during the facilitated compliance period between 19 November 2014 and 30 June 2015.
However, under questioning from counsel assisting the Commission, Michael Hodge, CFS executive general manager, Linda Elkins denied that the $750 re-engagement payment was made because advisers may have been receiving trail commissions while not actively being engaged with their clients.
She said her understanding was that the payment was to enable superannuation fund members to have a consultation with their adviser and agree on how their advice was going to be established going forward.
Despite Hodge’s questioning, Elkins said that just because advisers had been getting a trail commission did not mean they were not engaged with their clients.
