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.
The final draft of the $3 million super tax legislation remains unchanged and will include the taxing of unrealised gains and no indexation.
Amid Australians’ growing penchant for seamless digital experiences, an industry professional believes the most successful superannuation funds will be looking to leverage technology for their members in a number of ways.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Aware Super has outlined its systematic approach to corporate engagement as institutional investors increasingly assert their influence on company boards and take on an active stewardship role.
Add new comment