Wealthpoint to lower fees and increase commission, and more daily news
December 09, 2021
Wealthpoint has recently announced that product commissions will be under 4%. In a statement Wealthpoint said that the co-op retention rate will be approximately 3% starting from next year. Members are set to receive more commission as a result of the updated cap on the financial support Wealthpoint received from life and health insurers.
“National adviser business cooperative, Wealthpoint, has slashed member costs as the group looks to build further scale in the lead-up to full licensing across the industry.
Wealthpoint chief, Simon Manning, told members last week that the group would pass on more revenue to adviser businesses under revised commission terms.
Manning said Wealthpoint, which serves as the Financial Advice Provider (FAP) for about 50 independently owned advisory firms, would cut its “retention” rate – or the share of product commission kept by the central co-op entity – to under 4 per cent.
The co-op charges member annual fees to advisers and businesses as well as retaining a share of commissions earned on insurance, mortgage, investment and KiwiSaver products sold through the network.
Currently, Wealthpoint keeps just over 4 per cent of product commissions but will pare that back to under 4 per cent in a change that should see member firms collectively better-off by up to $1 million.
In a release, the group says it plans to reduce the co-op retention rate to about 3 per cent next year. Members also set to receive more commission share under a new cap on Wealthpoint-retained “financial support” from life and health insurers: any excess insurer-derived income above the cap will passed on to member businesses, the statement says.
Manning said Wealthpoint, which emerged out of the AMP NZ adviser body in 2019, now had the “real scale” to reduce member costs after the initial higher expense incurred in establishing a FAP-compliant network.” Click here to read more
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