NAB clarifies impact of commission cessation

NAB has confirmed what will happen to the $11 million per annum previously collected from commission-paying products.

On Monday, NAB announced it would be switching off grandfathered commissions paid by NAB Wealth superannuation and investment product providers to NAB Financial Planning and NAB Direct Advice advisers.

The move follows similar actions taken by both BT and Macquarie earlier in the year.

Responding to questions from ifa, a NAB spokesperson confirmed clients will be the beneficiaries of the recent decision.

“By NAB foregoing commissions from its superannuation and investment product providers, around 32,000 superannuation and investment customers will benefit through fee rebates and reductions, totalling approximately $11 million, with effect from January 2019,” the spokesperson said.

Earlier in the year, the royal commission heard from both ASIC and the FPA that grandfathered commissions should be removed from the industry, however both the AIOFP and the AFA have defended the commissions and their role within the industry.

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Forte Asset Solutions managing director Steven Prendeville previously told ifa that grandfathered revenue streams are “absolutely at risk” and that this is already reducing practice valuations.

NAB clarifies impact of commission cessation
NAB, grandfathered commissions, NAB Wealth, NAB superannuation, NAB Financial Planning, NAB Direct Advice, BT, Macquarie
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