New advice fee model for KiwiSaver
Milford wants to make sure advisers are getting paid for giving advice around its KiwiSaver funds, but has chosen not to go down the trail commission route like other managers.
Under its new model, called an "Advice Facilitation Fee", advisers can be paid either a $150 upfront consultation fee for giving advice or the client can pay the adviser out of their funds under management. With the latter option a 20 basis point fee on the sum invested is paid from the KiwiSaver member's account to the adviser.
Michael Robson, Milford head of intermediary distribution, says "advisers need to be paid for the advice given".
"There is a cost to giving advice and this is a way of remunerating advisers."
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