Accelerator Plus just got better

With the significant changes happening in advice and our continued advances in technology we've taken the opportunity to make some changes. This is now your chance to better service clients and continue to meet best interests duty with the enhancements to our Wealth and Super Accelerator Plus products.

From 1 March 2020 we're introducing new fees to benefit the majority of clients, as well as new investment options to suit the needs of High Net-worth clients.

New fees for your Accelerator Plus clients

We've updated our administration fee structure for both Super and Wealth Accelerator Plus accounts to benefit most clients. From 1 March 2020, lower administration fee rates will apply for new clients, with the addition of a minimum annual fee of $550. Click here for more details about our new Accelerator Plus fees.

Also, for accounts with over $1 million in international securities the fee rate has been reduced. This change applies to all clients from 9 January 2020.

There has been no change to the fees for Accelerator Core.

Who do the new fees apply to?

For new clients
The new administration fees will apply to clients who open a Netwealth Accelerator Plus account after 1 March 2020.

For existing clients
The new administration fees will apply to existing clients in Netwealth platform products from 1 January 2021.

This includes all clients in Wealth Accelerator Plus, Investment Wrap, Super Accelerator Plus and Super Wrap.

Clients can take advantage of the new fees earlier by electing to transfer - see below.

How it impacts you and your clients

As a guide, clients with a balance greater than $62,000 in their Super Accelerator or $77,000 in their Wealth Accelerator account are likely to benefit from the new fee structure.This will depend on the Netwealth product they are currently in and whether any special fee arrangements apply. The threshold will also be different for clients who are part of a family group.

For a client with $250,000 in Wealth Accelerator Plus the saving in fees could be up to $285 a year.

We recognise that you may have clients that may not benefit from this new fee structure. For those that are unlikely to benefit, they may wish to consider our Accelerator Core offering.

By providing substantial notice of the fee change we have attempted to give clients sufficient time to consider their circumstances prior to being impacted by the change.

For family group fee arrangements, if a member opts-in to the new fee structure and other members do not then the family group fee arrangement will cease to apply so care should be taken in transitioning clients to the new fees.

What you need to do

We will be sending your clients a notice on 4 March 2020 advising them of these changes. You will receive a copy of this letter on 2 March 2020.

Netwealth will provide tools to help you determine the impact of the fee change on your clients. Information and calculators will be available through your Netwealth BDM.

If you wish to transition a client to the new fee structure before 1 January 2021 there will be two options available:

• Online: An easy-to-use online transition tool will be made available from 1 March that will allow you to send a proposal to selected clients which they can accept through their Netwealth account. Learn more.
• Form: Clients can complete a “Change of account fees” form which will be sent to them with the notice and is available on our website.  This form can be lodged by adviser upload, mail or email.

Tailor better solutions for high net-worth clients

To help you meet the needs of your wholesale clients, we've introduced a Premium Service in Wealth Accelerator Plus and Investment Wrap.  The Premium Service includes access to:

• Managed funds available only to wholesale clients (which may include 'IM' funds, unregistered schemes and overseas funds)
• Foreign currency accounts
• Unlisted Australian bonds
• Unlisted international bonds.

How much does the Premium Service cost?

The Premium Service operates on a user pays basis. Clients will pay fees based on the premium assets they choose to hold.

• A fixed premium asset fee of $50 will apply annually for each wholesale managed fund and Australian bond held by the client. 
• International bonds will be subject to the same fees as international securities, with the international securities fee of 0.15% pa (reducing on holdings over $1m) and a settlement fee of $25 (plus brokerage costs).
• Foreign exchange holdings are subject to a margin on conversion to and from AUD and no interest is credited to foreign exchange holdings.

How it impacts you and your clients

New wholesale clients

• From 1 March 2020 new clients can select to join the Premium Service and provide Netwealth with evidence of their wholesale status.
• A fixed premium asset fee of $50 will apply annually for each wholesale managed fund and Australian bond held by the client, including this financial year. 

Existing wholesale clients

• Existing clients who have registered as Wholesale Clients will have access to the Premium Service from 1 March 2020.
• Current fees will continue to apply until 30 June 2020.
• From 1 July 2020 the premium asset fee will apply to any wholesale managed funds and Australian bonds held by the client and the current unregistered managed fund fee will cease to apply.

What you need to do

No action is required by you.

Details of the Premium Service and how to qualify a wholesale client are included in the Netwealth Wrap Service Guide 2 Premium Service for Wholesale Clients which will be made available on our website.