Industry's response

https://www.financialstandard.com.au/news/grandfathered-commissions-ban-unconstitutional-association-133566520?related=36090593

Some advisers fighting back.  

I don't see losing trailing commissions as a major issue because:

1) It impacts the entire sector the same way.  So all players will have to switch to charging directly e.g. AMP, IFL, not just CAF. 

2) $12.4m is only $5k per Authorised Rep.  Charging $5k+ per annum is not a high hurdle to recoup.

3) Furthermore, what leverage do advisers have when AMP/CAF are the licensees?  You either pay this fee or you are off the playing field.

4) This direct fee income is recurring in nature and will be viewed favourably by the market.  I expect this will trigger a re-rating when the dust settles.