Colonial First State has announced changes to its products over the coming year as it works to eliminate all grandfathered conflicted remuneration in a phased approach. This also now includes insurance.
The company says in a statement that the changes are part of its commitment to delivering better outcomes for members. The changes include:
In its retail products CFS announced it is making changes to “…simplify and reduce fees.” It will also be removing conflicted remuneration and notes these initiatives will benefit CFS members who have accounts in its legacy super and pension retail products.
…insurance commissions will also be removed
It notes that insurance commissions will also be removed, thereby reducing insurance premiums on these products and also on CFS FirstChoice Wholesale Personal Super.
CFS says that more than 190,000 members will each see an average benefit of around $560 per year in fee reductions, with the changes taking effect on 1 June 2020.
FirstWrap, Beacon products
Changes to its FirstWrap, FirstWrap Plus and Beacon products includes the removal of transaction fees and advice fees on listed security trades: “Conflicted remuneration and insurance commissions will also be removed on these products,” it states.
The company says these changes will benefit 1,100 members who will receive around $565 on average in annual fee reductions.
Kelly Power, General Manager of Product and Marketing at CFS, says that the changes are part of CFS’ commitment to putting members’ interests first and helping to create a better super system.
“This is a great outcome for our members – we know lowering fees will benefit retirement saving outcomes.
…we recognise this is an adjustment for many advisers and we’re committed to providing early notice and supporting them to help navigate and prepare for the changes ahead…
“However, we recognise this is an adjustment for many advisers and we’re committed to providing early notice and supporting them to help navigate and prepare for the changes ahead,” she says.
“We remain a strong advocate for quality financial advice and support the role that financial advice plays in helping Australians achieve financial well-being.”