As you’re aware, the Federal Government has passed legislation that prohibits the payment of grandfathered commission arrangements from 1 January 2021.
We’re finalising our arrangements to comply with this legislation that will remove any remaining commissions from our products, including commissions attached to group insurance policies, from the end of November 2020.
Adviser Service Fee arrangements are not impacted by this change.
Accrual and payment of the final commission payment
It is expected commissions will accrue until 30 November 2020 with the final payment to be made in December 2020.
As the legislation prohibits the payment of any commission from 1 January 2021, there will be no accrual or payment of commission for December 2020. All commission accruals will cease on 30 November 2020 with no further accruals after this date.
You can check your client’s current account fees by downloading the Account Details report. Simply follow Clients and accounts > choose your client > select Account details from the drop down.
For any changes to administration fees in line with the current product offer, ahead of the legislative change, your client will need to complete the Change of account fees form. A copy of the product offer documents can be found at wrapinvest.com.au/fsp.html
Options for alternative adviser remuneration
We offer a range of options for the payment of Adviser Service Fees with the consent of your clients.
We’ll update you in October as we finalise our arrangements.