Partners kills its matrix
Partners Life has decided to stop using its Customer Outcome Matrix (COM) and change its commission structure.
Thursday, November 28th 2024, 9:42AM
Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which are due to come into effect next year.
The COM was introduced in July 2021 as a way of measuring advisers' performance by surveying policyholders.
It was designed to ensure clients understood the advice they were provided, to encourage positive adviser conduct and create good customer outcomes. It was also aimed at early detection of potential issues at claim time.
Partners also tied its commission structure to the matrix, paying high rates of bonus commission corresponding to the scores advisers received.
From January 1 Partners will "no longer calculate bonus commission based on COM measures."
Partners chief distribution officer Andries van Graan told advisers at the first of the company's Spring into Summer roadshows in Hamilton that advisers would now all be paid 100% of bonus commission.
That means "the vast majority (of advisers) will get a pay increase."
He acknowledged that the matrix was making disclosure difficult for advisers.
With the changes to commission payments will be "consistent reliable and you know what it is going to be."
The matrix was not overly popular with advisers and created complexity for them as well as the company.
The COM is not being completely killed off. The surveys will continue but not be tied to commission. Where a client gives a no answer to a question that information will be passed onto the adviser.
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