NAB/MLC retained grandfathering to retain planners
NAB/MLC decided to pursue keeping grandfathered payments to financial planners as part of a successor fund transfer (SFT) process because of its concern that planners and their clients would take their business elsewhere, the Royal Commission was told today.
Giving testimony before the Royal Commission into Banking, Superannuation and Financial Services, former MLC/NAB executive, Paul Carter acknowledged that it had been open to NAB/MLC to abandon the grandfathered payments, but it had chosen not to.
He said that this was because of the contractual arrangements with the planners and the likelihood the planners would be dissatisfied and take their business elsewhere.
However, Carter later acknowledged under questioning from counsel assisting the Royal Commission, Michael Hodge QC, that contractual arrangements with the planners would not have been an issue for the trustee of the fund, NULIS.
Hodge asked whether, given advisers’ best interest obligations, it would have been wise to move clients out of commission arrangements.
Carter said he believed the two positions could be reconciled because of the MLC products were available to the clients.
Seeking clarification of what had occurred, the Royal Commissioner, Kenneth Hayne sought clarity from Carter around what had been pursued was a platform transfer rather than a successor fund transfer.
Recommended for you
Ahead of the 1 January 2026 education deadline for advisers, ASIC has issued its ‘final warning’ to the industry, reporting that more than 2,300 relevant providers could be on their way out.
As high-net-worth investors look to opportunities in alternatives, Praemium has revealed that advisers who can deliver on this demand tend to have deeper relationships with their clients as they are seeking more involvement in the investment process.
As adviser-client relationships stabilise, Investment Trends’ latest report said digital hybrid advice models are key to addressing the supply-demand gap in Australia.
A Koda Capital partner and executive team member, who joined the firm from almost a decade in advice roles at AMP, has departed the wealth manager.
