IOOF cuts cost of DKN-badged BT Wrap
IOOF has reduced the administration fee cap of DKN Financial Group's white-labelled BT Wrap product by 25 per cent, effective 1 May 2012.
The fee reduction will apply to all new and existing customers, and "all members will be better off", according to IOOF general manager for distribution Renato Mota.
"The pricing of the BT badge hasn't been reviewed since its initial launch quite a number of years ago," Mota said.
IOOF decided that the product wasn't as competitive as it could be - particularly in an environment where advisers and clients are very fee-conscious, Mota said.
"The feedback we have received from advisers has allowed IOOF to provide clients with a saving of up to $1,100 per annum," he said.
The decision to reduce the administration fee is also a play at the self-managed superannuation fund (SMSF) sector, Mota said.
"That was probably a segment of the market where we weren't as competitive as we would have liked. This is really trying to address that issue. Hopefully, we'll see ourselves pick up a greater proportion of the SMSF market," he said.
The badged BT product is also distributed in the independent financial adviser space, which constitutes "half of our market", Mota said.
DKN is one of BT Wrap's largest clients, with $5.5 billion in BT Wrap funds under advice, according to IOOF.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
