Financial planners’ income to drop by almost half
(15 November 2012 – Australia) Financial planners at National Australia Bank (NAB) were warned of big cuts to their commissions-based income due to a slowing market, higher customer expectations and new regulations that will require changes to companies’ pricing structures.
According to an internal document, the adjustment will begin in December and is likely to impact heavily within the ranks of senior financial planners as percentages earned on previous sales are dropped.
The change will end the practice of continuing commissions generated by past sales of products, which in some cases are passed from one planner to the next on retirement. In most cases clients were often unaware of the ongoing costs.
That revenue has helped financial planners achieve monthly sales goals by NAB financial planners, keeping their incomes high.
Under the proposed changes, clients will receive ''scaled'' services, with high-needs clients getting direct advice with phone advice for customers who need less advice. The changes will also bring NAB into line with planned Future of Financial Advice reforms.
The change will end the practice of continuing commissions generated by past sales of products, which in some cases are passed from one planner to the next on retirement. In most cases clients were often unaware of the ongoing costs.
That revenue has helped financial planners achieve monthly sales goals by NAB financial planners, keeping their incomes high.
Under the proposed changes, clients will receive ''scaled'' services, with high-needs clients getting direct advice with phone advice for customers who need less advice. The changes will also bring NAB into line with planned Future of Financial Advice reforms.
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