The insurer has confirmed that it will remove commissions on a number of its life insurance products offered within master trusts and super funds, in accordance with the January cut-off date for grandfathered remuneration.
In a statement, BT said adviser commissions would cease on its Protection Plan policies offered through Westpac Master Trust or SuperWrap with a commencement date before 22 June 2012.
The group said the policies were “individually underwritten but offered under a group contract as disclosed in the policy document”.
“All types of commission on these group contracts must cease on 1 January 2021, as required under the legislation,” BT said.
As per legislation to remove grandfathered commission arrangements, BT said it would be rebating the commissions to customers.
“This legislation affects all life insurers that sold life insurance within superannuation under a group contract before 1 July 2013,” the group said.
ifa understands advisers with substantial amounts of revenue owing from the specific product lines were proactively communicated with prior to the changes being announced.
The move follows the removal of commissions from other major institutions’ products in line with grandfathered remuneration laws, including CFS super products announced in March.
While life insurance commissions are still allowed under LIF rules, some forms of insurance offered under group contracts have been caught by the removal of pre-FOFA grandfathering, which was a recommendation of the royal commission.
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