National Australia Bank (NAB) has announced plans to remove grandfathered commissions for salaried advisers amidst revelations of superannuation misconduct at the banking royal commission.
NAB Financial Planning and NAB Direct Advice will cease accepting these commissions from NAB Wealth superannuation and investment product providers.
The bank said that the move will benefit nearly 32,000 superannuation and investment clients, who will receive fee rebates and reductions worth around A$11m ($79,09,401.5) from January next year
At the same time, NAB Financial Planning and NAB Direct Advice also intend to work alongside external product providers to have the grandfathered commissions paid to them applied for members’ welfare.
“NAB supports a complete move away from grandfathered commissions at an industry level – but will continue to honour obligations to aligned advisers and independent financial advisers under FOFA legislation. This is a complex issue for the industry, and NAB believes the right framework needs to be in place to appropriately transition off grandfathered commissions,” the bank said in a statement.
NAB was recently charged with criminal offence by the banking royal commission for charging customers fees for no service as well as grandfathering commissions inappropriately.
The bank was also criticised for withholding information about the scale of its fee-for-no-service issues from the Australian Securities and Investments Commission.
NAB Group CEO Andrew Thorburn said: “We need to continue to focus on customers and keep finding ways to improve, to lift and to rebuild trust. To do this we must continue our important work to transform the bank to be simpler, faster – and better.”