Wealth management group Colonial First State (CFS) has introduced dial downs on commission trails for select product offerings on its FirstChoice platform in a move to further support advisers on a fee-for-service model.
"We are just playing catch up with the industry as a number of platforms have already introduced dial down commissions. The move will also support advisers who are looking to move to a fee-for-service model," CFS chief executive Brian Bissaker said.
Advisers can now agree with investors to dial down trails on FirstChoice Investments, super and pension investment options.
This means advisers, in consultation with their clients can opt to take the trail commission to zero.
Previously advisers would have to apply a trail rebate back to clients, so it removes a layer of administration and helps those advisers moving toward a fee-for-service model.
Bissaker said adviser demand was growing for the flexibility in using dial down commissions.
"A number of advisers wanted these flexible pricing arrangements, particularly as they had clients who had less than $100,000 to invest," he said.
There is currently a move by firms to a fee-for-service model.
MLC has already introduced commission-free products to its superannuation, pension and investment products on its MasterKey platform.
"We believe more and more product manufacturers will be moving to introduce commission-free products as the industry as a whole moves to a fee-for-service model," MasterKey head of product Brent Howells said.
In April, AMP launched Flexible Lifetime Super Easy, a commission-free superannuation product.
The product targets customers who have an annual income of less than $100,000, have less complex superannuation needs and are less likely to seek financial advice.
