CFS reported the changes would provide average savings of around $500 in annual fee reductions for more than 200,000 members.
The cuts have followed on from changes in the past year for more than 770,000 members.
CFS said as it dumps all grandfathered commissions for product distribution by financial advisers, the fee structure changes would pass on the resulting savings to members.
Members who have accounts in legacy and pension retail products will benefit from the cuts, with more than 190,000 members to each see an average saving of around $560 per year in fee reductions. The change takes place from June.
Insurance commissions are set to be removed on the retail products as well as FirstChoice Wholesale Personal Super, reducing premiums.
Meanwhile, the FirstChoice Employer Super will close its legacy investment options, with members’ investments to be transferred to corresponding options in open investment menu. Grandfathered commissions for the product will cease.
The FirstChoice Employer Super changes are estimated to impact around 18,300 members, with an average benefit of $85 a year. But a proportion of members will see fee increases due to the removal of some discounted fee structures.
Finally, CFS has aimed to simplify and reduce fees for FirstWrap, FirstWrap Plus and Beacon, with the removal of transaction fees and advice fees on listed security trades. It will also abolish conflicted remuneration and insurance commissions across the products.
CFS has forecast the change will save 1,100 members around $565 on average in annual fee reductions.
Kelly Power, general manager of product and marketing at CFS said the changes were part of the company’s commitment to helping create a better super system.
“This is a great outcome for our members – we know lowering fees will benefit retirement saving outcomes,” Ms Power said.
“However, we recognise this is an adjustment for many advisers and we’re committed to providing early notice and supporting them to help navigate and prepare for the changes ahead. We remain a strong advocate for quality financial advice and support the role that financial advice plays in helping Australians achieve financial wellbeing.
“We strongly believe that a more viable and sustainable superannuation system is vital to providing better retirement outcomes for Australians today and in the future.”
