NAB Financial Planning transitions to Fee for Advice for all new investment clients

Wednesday, 23 January 2008

NAB Financial Planning, the financial advice arm of NAB, today announced that it was transitioning its more than 400 financial planners to a Fee for Advice approach for all new clients seeking personal investment and superannuation advice.

NAB Financial Planning will transition to a Fee for Advice approach for all new investment clients between now and the end of 2008.

Clients will pay an explicit fee for advice which will be agreed between the adviser and the client and all trail commissions paid by investment product providers will be fully rebated to clients.

General Manager of NAB Financial Planning, Mr Geoff Rogers, said “We are focused on building long term relationships with our customers that are based on quality advice, trust and transparency.”

“For more than four years we have offered customers a choice between fees and commissions but we feel the time is right to make a move towards a fee for advice only approach for all new personal investment and superannuation clients.”

“Commissions will always be associated with the sale of a product and do not place an explicit value on the advice being given because they are bundled into the product’s Management Expense Ratio (MER).

“We believe it’s important that our customers clearly understand exactly what they are paying for financial advice as well as what they are paying for their investments and any administration costs,” Mr Rogers said.

As part of the transition to Fee for Advice, NAB Financial Planners will continue to encourage customers to adopt an Ongoing Service Package to ensure that clients have access to advice on a continual basis.

“In today’s swiftly changing environment, access to ongoing, first class financial advice is essential to ensure that an individual’s financial circumstances reflect market, regulatory and personal changes,” Mr Rogers said.

Mr Rogers said that arrangements with existing clients would be maintained however, over time, he expected many of them would also transition to a fee for advice approach in discussion with their financial planner.

For further information, please contact: Stacey Mitchell Manager, Media Relations, Wealth Management National Australia Bank Limited T (02) 9966 3035 M 0400 305 446

* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges