Industry's response, page-8

That is not from the horses mouth:

• Under Centrepoint’s new model, ARs and boutique licensees will sign up to a “core package” with the option to add additional high quality services from a menu for an additional cost.

“We currently charge a dealer services or advice services fee [under the existing arrangement] but its heavily discounted by these rebates and other margin discounts,” he said.

CEO Angus Benbow has confirmed the cost will increase for most if not all ARs and boutique/self-licensed advisers who use the group’s licensee services.

This is also not what I was told when I met with the company.

Your notion that only ARs will experience new prices, and firms holding their own AFSLs will not experience new prices is false.

Your notion that CAF would charge Company A (holding its own AFSL and <5 advisers) and Company B (holding its own AFSL but with >20 advisers) the same price is also false.

Your notion that CAF is not receiving rebates from either Company A or B is also false.

The bottom line is adviser rebates need to be replaced across the ENTIRE industry - whether an adviser holds their own AFSL or is using someone else's AFSL. That's why the yardstick figure of $12.4 million across the entire network is conceptually accurate (sure, some more than others). You are implying only ARs will have to carry the load.