Id imagine both passive funds and robo-advice (cheap, simple...

Id imagine both passive funds and robo-advice (cheap, simple advice) with the more complex scenarios being handled by planners and advisers.

I can't say I know IOOF inside out but I would imagine they will be hit by grandfathered commissions two-fold.

1. Advisers will lose some clients at least, that is a formality for any business still receiving any remuneration of this nature.

2. Any of their current products paying grandfathered commissions, if switched off, the adviser is far more likely to actually review the product for suitability and move elsewhere, if suitable. Considering IOOF are certainly not the cheapest in the market considering BT just cut their admin fee to $540 + 0.15% p.a., id imagine that isn't good.

Financial planning isn't supposed to work that way but unfortunately, advisers are sometimes hesitant to remove any clients from these old grandfathered commission paying products because its easy money for them. If they are forced, the products paying said commissions are old and usually no good, they will either be moved to lower margin products or to another provider.