Fiducian's ASX announcement today:Fiducian has reviewed the...

Fiducian's ASX announcement today:

Fiducian has reviewed the recommendations and welcomed the Final Report by the Hayne Royal Commission intoMisconduct in the Banking, Superannuation and Financial Services Industry.

The Report has reiterated the norms of conduct which imply that the law is to be obeyed, that client interests mustcome first, that clients should not be misled and that services should be fit for purpose, delivered fairly and withreasonable care. The driving code of conduct for Fiducian and its people has always been to observe these normsand to provide products and professional services in a transparent manner for the benefit of our clients. It isrefreshing to note that the way we operate is in line with the expectations detailed within the final report of theRoyal Commission.

On the Royal Commission’s recommendation, the Government has agreed to end grandfathered commission from 1January 2021. At Fiducian, work on converting commissions to fees for service, that are agreed with our clients inwriting, began just after the implementation of the Future of Financial Advice (FOFA) reforms. The bulk of clients arealready on fee for service arrangements. Those outstanding include client book acquisitions made over the lastcouple of years and are in the process of conversion. About 4% of the group’s net revenue is from grandfatheredcommissions, which management estimates will largely convert to fee for service before 2021. Insurance commissionsand mortgage broking which have been adversely impacted are not our core business and therefore are unlikely toimpact our revenue in any material way.

Fiducian sees no need to alter its business model or the way it has operated or intends to operate in the future. Weshall continue to obey the law, all it stands for and serve our clients to the best of our ability. The words “IntegrityTrust Expertise” under our logo should stand us in good stead in the future.

Fiducian will announce its financial results on Thursday, 14 February 2019 (after market close) for half year ended on31 December 2018.

-Indy Singh, Executive Chairman, Fiducian Group