Deal over KiwiSaver trail commissions goes sour
Patrick Diack was censured by the FMA for offering the money if people outside Work and Income offices signed up for Superlife products. He was unregistered and had also been working for his brother, Lawrence’s, firm, Mr and Mrs KiwiSaver, selling Fidelity Life KiwiSaver products.
He said his team amassed 5000 customers by again offering financial incentives, usually in the form of vouchers, to clients who signed up.
That soon raised eyebrows and another warning was issued, Fidelity Life requested the company be closed down and Diack was fired.
Patrick Diack said his father drafted an agreement between the two brothers, under which Lawrence Diack agreed to pay half of the trail commission for the 2000 customers Patrick was directly responsible for signing up, for the rest of his life.
The trail was 0.25% of funds under management, per annum.
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