This article describes what grandfathered commissions are, why they are being phased out, the impact of the Haynes Royal Commission, and how it will change your relationship with your adviser.
While the financial planning industry has undergone a raft of recent reforms, one of the most significant changes has been the abolition of ‘grandfathered commissions’, effective from the start of 2021.
Grandfathered commissions cover a variety of fees paid directly from a client’s account by the product provider. In some cases, the client was aware of the fees they were paying, but in many, the client was not, and this is where the problem lies.
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