Findex Group will move its financial advice licensees away from commission-based payments for risk advice and implement a pure fee-for-service model.
A spokesperson for Findex Group confirmed to ifa’s sister title Risk Adviser that the non-aligned group will transition away from its current hybrid commission model and introduce a fee-for-service model from 1 July 2015.
“Findex and Centric Wealth – one of its companies – will move to a fee for service model for insurance, and over the next few months Crowe Horwath will also convert to a fee for service model,” she said.
“They will get rid of commissions completely.”
The spokesperson said the decision to move to a fee-for-service model for risk advice had been something the group’s chief executive Spiro Paule “had been considering for years”.
Findex Group’s remuneration change follows the recent announcement from non-aligned licensee Fortnum Financial Advisers that the firm will adopt a fee-for-service model, with hybrid or level commissions in a bid to “self-regulate and ward off further legislative attack”.
AMP and Centrepoint Alliance have also announced they will drop upfront commissions.
SUBSCRIBE TO THE IFA DAILY BULLETIN
24 Jan 2018FPA ‘never intended’ FPEC list for existing advisersBy Killian Plastow
24 Jan 2018ASIC investigation confirms in-house product biasBy Aleks Vickovich
24 Jan 2018CBA compensation payout hits $6.87m and risingBy Staff Reporter
23 Jan 2018Financial advice changing of guard ‘positive’By Staff Reporter
23 Jan 2018Royal commission, best interests duty and 2018 outlookBy Staff Reporter
23 Jan 2018Advisers challenged by geopolitical climate: reportBy Staff Reporter
- view all