Dealer groups face future without overrides

AIA is moving to a new commission structure it says will be more straightforward.

It is not changing the total amount of commission paid to advisers but is altering how it is paid.

“We’ve taken a view that volume and persistency related commission bonuses can be unnecessarily complex and so we are offering a flat initial commission rate and the choice of either a standard option or a pendulum option,” spokesman Craig Glover said.

“Our new AIA Living commission structure payable to advisers does not include any production or other volume related bonuses. We have existing contractual arrangements in place with some advice groups, which include volume related payments in some cases. These existing contractual arrangements will remain in place whilst we work through future changes with our partners.”