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Published
July 03, 2018 18:03:41
Australia's Largest Investment Bank, Macquarie Group, joins the rush of financial institutions prohibiting so-called "grandfathered" sales commissions to financial advisors [19659003]. quality of advice – being banned in 2013, many advisors had received legacy payments from products sold before the coming into force of the Future Financial Advice (FOFA) laws.
The original FOFA reforms were intended to prohibit all conflicting commissions. and large wealth management companies have successfully fought to maintain legacy contracts in order to satisfy their advisors and sell the financial products that they produced.
The continuation of the existence of conflicting commissions was the subject of intense grids. The AMP advisor, Jack Regan, told the royal commission that five years after the introduction of FOFA reforms, advisers still received up to 70 percent of their compensation through l & # 39; 39; intermediary conflicting commissions rather than direct fees, as was originally planned.
The problem was magnified by admissions that many clients were paying for advice they had never received. 19659008] Macquarie follows the example of Westpac and ANZ in stopping the practice before the filing of Commissioner Kenneth Hayne's recommendations.
Macquarie said that about 17,000 customers of its private and private bank would benefit The decision to eliminate commissions on grandfathered products is part of the ongoing transformation of our business and for the purpose of increase transparency and demonstrate value to our customers, said Macquarie in a statement.
"For independent financial advisors currently receiving grandfathered payments through our third-party channels, this has no impact on the arrangements that will continue."
ANZ, which abandoned wealth management, announced last month, Westpac announced that it would stop paying commissions to BT Financial Group's advisors, who would take care of more than 140,000 customers.
A recent report from the Productivity Commission reveals that pension fund members are still paying more than $ 200 million. in trailing commissions per year.
Topics:
consumer-finance,
consumer protection,
banking,
Australia
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