Premium Wealth Management (Premium) will transition to a full fee for service dealer group effective 1 July this year, Premium executive director Michael Byrnes announced at the dealer group's tenth birthday celebration in Sydney last night.
Byrnes said the government and community wanted planner remuneration models to be more transparent, and that from July all Premium member firms, including the Premium dealer group, would operate on a fee for service basis only.
"As part of the changes Premium member firms will pay Premium a monthly fee, comprising a fixed component and a variable cost recovery component," Byrnes said.
"Rather than be retained by Premium as has been the case in the past, all commissions, bonuses, wrap platform rebates and volume bonuses will be returned to member firms, with advisers to then add that to the equation when negotiating fees with clients."
Byrnes said in February that Premium had intentions to grow its number of member firms from 20 to 30 by 2012 and to 50 by 2015.
He said the dealer group had representation in Queensland, New South Wales and Victoria, but wanted to scope out opportunities in other states as well.
Meanwhile, Premium is yet to reveal the structure of its management team following the departure of chief executive Chris Saunders, who has since been appointed head of financial planning at Wilson HTM Investment Group.
Earlier this year, Premium made Saunders' position as chief executive redundant, with the group planning to announce its plans later in the year.
