Count scraps platform incentive
Independent dealer group Count Financial has announced it will scrap an incentive program that rewards its planners for placing funds into preferred platforms, even though the program will still be acceptable under new conflict of interest regulations.
Count managing director Barry Lambert says the move is an attempt by Australia’s third largest dealer group to reassure consumers that its planners are not pressured to use platforms with which Count has an arrangement.
At the moment, planners from Count have their annual dealer fee, worth around $30,000, waived if they put amounts over a set target into preferred platforms.
Lambert says the incentive will continue to be offered to advisers, but in future will be based on the total revenue they generate for Count, as opposed to the volume of funds they place into the group’s preferred platforms.
The move is in response to new conflict of interest rules for financial planners which come into effect on January 1, 2005. The Count incentive scheme in its present form would still be allowed under the new rules as long as it was disclosed to clients.
Lambert says the change was made to reinforce the group’s reputation for giving advice that is in the best interests of clients at a time when the credibility of the financial planning industry is under scrutiny.
“The problem with our industry is that most of the advisory groups are owned by product manufacturers causing a possible conflict of interest,” Lambert says.
The change is expected to be made from either January 1 or July 1 next year.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
