MJW suggests end to overrides

Actuaries Melville Jessup Weaver (MJW) have been working on a report for the Financial Services Council.

It is intended to suggest a solution for any misalignment of incentives between advisers and clients that it uncovered. It follows a similar report by John Trowbridge in Australia, which led to large reduction in advisers' upfront commissions.

An early draft of the MJW report was submitted to the FSC Council for review at a recent meeting but was sent back for more work.

The report recommends removing overrides, which some dealer groups rely on for their income.