From July 1, it will pay override commission payments to FAPs that satisfy a customer outcome metric, not dealer groups.
The structure will be a 100% base commission, a bonus of between 80% and 120% and an override of 30%, taking the combined total to maximum commission of 256%.
FAPs can still opt out of FAPO and choose to have the override money go to their dealer group, should they wish.
Ballantyne said Partners Life had had a number of advisers sign up already, to take effect on July 1. They had to already have a transitional licence to do so.
“I don’t know how many are intending to pay that money to a group or service provider, we don’t ask them to tell us that. I would say every Partners Life adviser who has set up their own provisional licence has signed up for FAPO, or pretty close.”
Those that had not were likely to work under another FAP, she said, or had not got around to it yet.
Newpark has hit back at the scheme. Founder Darren Gannon told members they were at a “cross road”. “This isn’t the pay rise you think and comes with criteria that most independent advisers should be uncomfortable with. BE SMART, before signing discuss your options with Newpark so you can make a fully informed decision. Once you commit on this pathway, it may be hard to turn back.”
Ballantyne said the group was entitled to its opinion.
“Giving the override to the FAP rather than the dealer group is a challenge to them. Some advisers have said is that a threat and I’ve said you should ask them. Some advisers will still want to belong to a dealer group to get the override from other providers. They have a conversation to have with the dealer group regarding what happens with the FAPO paid by Partners Life. The difference is that they get to decide that.”
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