Advisers at this major institution have been told that they should expect a significant drop in income in commissions from next month.
An internal document has been circulated amongst NAB planners telling them that market conditions have led the bank to introduce the new commission structure, reported Fairfax.
According to the report, the move has been made due to the effects that a slowing market, higher consumer expectations and new regulations have had on pricing structures.
The internal communication stated that “increasingly, more customers are demanding value be delivered, and where actual value is not deemed to be sufficient, customers are moving relationships, accounts and holdings to other providers where the value exchange is deemed more equitable,” and that the bank was “empathetic that these changes have a personal impact on people”.
According to a NAB survey, 15% of customers were set to opt-out from their adviser relationship and 40% were unsure whether they would stay or go.
The bank intends to implement more phone-based scaled advice for low-need clients, with higher-need clients receiving more comprehensive advice, said the report.
Will you be affected by these changes? Have your say below.