Godfrey Pembroke adopts fee-for-service model
MLC-owned financial planning dealer group Godfrey Pembroke has announced it will move to a pure fee-for-service model for all of its new clients from October 1, 2006.
Godfrey Pembroke managing director Mark Rantall said the initiative, which was driven by the firm’s 170 advisers, is all about transparency and control for clients.
“It’s about transparency, because the client has a right to know how much they’ve paid, who they are paying it to, and what they are getting for what they pay,” he explained.
“It’s about control, because it’s about the client being able to have a relationship with an adviser, agree what the terms of engagement are, and be able to control the fees that they pay,” Rantall added.
Once the model is in place all Godfrey Pembroke advisers will have to either dial down or rebate any commissions associated with the products in which the client is investing, and replace them with a fee-for-service negotiated directly with the customer.
“The fee will be expressed as a dollar amount on the statement, but it can be negotiated as a percentage of funds under advice, a flat dollar amount, or whatever the adviser and client agree is relevant for their set of circumstances,” Rantall said.
Godfrey Pembroke’s new direction marks the second step taken by the MLC group to encourage a fee-for-service financial planning environment.
In March, the group launched a platform product containing zero commissions called MasterKey Fundamentals.
“Across our whole advisory network we’re helping our advisers transition to a fee model.
“We’re providing product that accommodates a fee model, and we’re providing business support that helps our advisers move to a fee model,” MLC chief executive Steve Tucker said.
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
