The major bank has today followed its peers Westpac and Macquarie by turning off grandfathered commissions for salaried advisers.
NAB today announced that NAB Financial Planning (FP) and NAB Direct Advice will no longer accept grandfathered commissions from NAB Wealth superannuation and investment product providers.
The bank said that around 32,000 superannuation and investment customers will benefit through fee rebates and reductions, totalling approximately $11 million, with effect from 1 January 2019.
NAB FP and NAB Direct Advice will also work with external product providers to have grandfathered commissions currently paid to them applied for the benefit of members.
“We need to continue to focus on customers and keep finding ways to improve, to lift and to rebuild trust,” NAB group CEO Andrew Thorburn said.
“To do this we must continue our important work to transform the bank to be simpler, faster – and better.”
NAB said it supports a complete move away from grandfathered commissions at an industry level – but will continue to honour obligations to aligned advisers and independent financial advisers under FOFA legislation.
"This is a complex issue for the industry, and NAB believes the right framework needs to be in place to appropriately transition off grandfathered commissions," the bank said.
"We look forward to working with the wider industry and regulators to ensure this is done in a considered way in line with community and customer expectations."
The company is looking to expand its services for financial advisers.
The FPA has developed a new SOA video toolkit to guide members.
“All advice should be regulated in a similar way”, a financial services firm has argued in its QAR submission.
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