NAB/MLC retained grandfathering to retain planners

6 August 2018
| By Mike |
image
image
expand image

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.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day 5 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 5 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 6 hours ago