No details on Godfrey Pembroke move to fees
Godfrey Pembroke has so far been unable to provide details of how a shift towards fee for service for advice on insurance products would be achieved.
The company announced last week that it would be moving to a 100 per cent holistic fee for advice payment structure for its client base for all products, including insurance and mortgage products.
Responding to enquiries from Money Management, a National Australia Bank (NAB) spokesperson said of its subsidiary: “Godfrey Pembroke is currently working with all of our insurance product providers on specific implementation processes as part of the transition to a holistic fee-for-advice model. By early July we will have completed a full overview and will be able to provide more details on how insurance products will fit into our 100 per cent fee for advice offer.”
NAB responded to further questioning from Money Management by resending segments of the original press release stating the company’s intention to be a 100 per cent fee-for-advice network by 1 October, 2011.
Although the Financial Planning Association has recently said that in a fee-for-service environment the cost of advice for life insurance would be too high for many consumers, resulting in an exacerbation of the existing underinsurance problem, Godfrey Pembroke said there is significant demand in its target market for a holistic fee-for-advice offering across all products.
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