THIS SITE IS INTENDED FOR ADVISER USE ONLY

By clicking through to the Investments or Platforms site below you confirm that you are a licensed adviser operating under an Australian Financial Services License.

Delivering better outcomes to members

Fee reductions and other changes to FirstWrap Plus and FirstWrap from 1 July 2020

This year, we’re making changes to FirstWrap Plus and FirstWrap to simplify our fees and comply with legislation to remove grandfathered conflicted remuneration.

In June 2019 we rolled out fee reductions to over 500,000 members across FirstWrap Plus, FirstWrap and FirstChoice. We also removed the following fees in December 2019:
 

  • Licensee service fee and Dealer service fee
  • Non-advised client fee
  • Asset transfer fee.
     

On 1 July 2020, we’re making more changes to simplify and reduce the number of fees for investors and members (members) on FirstWrap and FirstWrap Plus, including:
 

  • Removing transaction fees (applies to FirstWrap only).
  • Removing advice fees on listed security trades.
  • Removing insurance commissions.

Removing transaction fees

Transaction fees are deducted each time a share or managed fund transaction is performed. They are either a fixed price or in the case of smaller orders, a percentage of the transaction value. This fee will be removed.

Removing the Adviser Service fee (Listed Securities)

The ability to charge an advice fee on listed security trades will no longer be available from 1 July 2020.

Removing grandfathered insurance commissions

Insurance commissions are calculated as a percentage of the member’s base premium and are paid to the licensee. These payments to licensees providing advice were deemed conflicted remuneration and banned for new members from 1 July 2014. Payments for existing members were grandfathered.

Premiums from 1 July 2020 will reflect this change for members who were under a grandfathered arrangement.

Communicating to your clients

For FirstWrap Plus and FirstWrap, we’ll write to your impacted clients from May 2020 to advise them of these changes. We’ll provide you with a copy of the communication before we send it to members.

Other products

Licensee and adviser use only

This document has been prepared by Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) based on its understanding of current regulatory requirements and laws as at 28 February 2020. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including AIL, accepts responsibility for any loss suffered by any person arising from reliance on this information. AIL is the issuer of the FirstWrap products which includes FirstWrap Plus and FirstWrap (closed to new applications) superannuation, pension and investment products (collectively FirstWrap products). The investment performance and the repayment of capital of AIL products is not guaranteed. This document provides information for licensee and adviser use only and is not to be handed on to any member or investor. It does not take into account any person’s individual objectives, financial situation or needs. The Target Market Determinations (TMD) for our financial products can be found at www.cfs.com.au/tmd and include a description of who a financial product is appropriate for. You should read the relevant Product Disclosure Statement (PDS), Financial Services Guide (FSG) or Investor Directed Portfolio Service Guide (IDPS Guide) before making any recommendations. Clients should read the PDS, FSG or IDPS Guide before making an investment decision and consider talking to a financial adviser. FirstWrap PDSs, FSGs and IDPS Guides can be obtained from your financial adviser.

The content displayed on this page is intended for financial advisers only