The types of advice fees available on Macquarie Wrap are:
The advice fees set up on your client's account as at the end of a given month (or as at the day when your client’s account is closed) will be the fees applicable for that month (or part thereof if the account is opened or closed within that month). These fees are charged to your client's account on approximately the 3rd business day of the following month (or upon account closure).
If there is an insufficient cash balance to pay the advice fees, we may sell or draw down assets as described in the relevant PDS or IDPS Guide to cover outstanding fees. Unpaid fees will accrue and be charged in the future fee runs, provided there is sufficient cash to cover both the current and previous month's fees.
When a new account is opened, advice fees will be charged based on the advice fee structure agreed between you and your client:
One-off advice fees will be paid out as part of our monthly fee run. This means, if the fee run has ended and we receive a request for a one-off advice fee on the 7th business day of the month, this will be charged during the regular fee run on approximately the 3rd business day of the following month (or upon account closure).
If there is an update to an advice fee within a month, the updated fee will be used to calculate the fee for the whole month. That is, the old advice fee will not apply for the part of the month for which it was initially loaded.
APRA and ASIC released joint letters to superannuation trustees in April 2019 and June 2021 regarding superannuation trustee’s obligations with respect to advice fee deductions from super accounts. These letters outlined (and then reinforced) the regulators’ expectations of Trustees in respect of:
ASIC released Report 781, Review of superannuation trustee practices: Protecting members from harmful advice charges in May 2024 and outlined its expectations of trustees including:
Macquarie Investment Management Limited (MIML), as trustee of the Macquarie Superannuation Plan, has obligations to oversee advice fees being paid from members’ accounts and to meet the expectations of APRA and ASIC.
In the application, Digital Advice Fee form and switch forms available in Adviser Online, we’ve placed limits on what can be entered as advice fees from your client’s Macquarie Wrap account. In limited circumstances, we may consider exceptions for advice fees that exceed these caps. If you or your client requires an exception, please connect with us via live chat.
We reserve the right to update the Advice Fee Caps at any time without notice.
Advice Fee Caps that apply for super and pension accounts are reviewed annually and have been revised from 1 October 2024 for new advice fee arrangements and renewals. In revising the caps we’ve considered:
| Fee Type | Fee Structure | Cap (ex GST) |
|---|---|---|
| One-off advice fee | Flat dollar | $17,500 |
| Fixed term and Ongoing advice fees | Flat dollar | $17,500 pa |
| Flat percentage | 1.75% pa of total account balance | |
| Tiered percentage | 1.75% pa of account balance in each tier | |
| Transaction advice fee (excluding auto plans) | Flat dollar | $200 per transaction |
| Flat percentage | 1.75% of each transaction | |
| Minimum balance, under which no advice fees are allowed to be paid1 | $10,000 minumum account balance |
1. One-off and Transaction advice fees will accrue on the account and will only be collected when the account balance exceeds $10,000 on the last day of the month or just prior to account closure. Fixed term and Ongoing advice fees will not be charged if the account balance does not meet the minimum requirement and will not accrue on the account.
Different caps on advice fees apply to IDPS accounts in the Digital Advice Fee form.
We may choose to withhold or not charge advice fees in certain circumstances including where:
We reserve the right to ask you and/or your client for evidence of the services that are to be, or have been, provided for advice fees to comply with our obligations under law.
As a trustee, we have obligations to oversee advice fees being paid from members’ accounts. In the first instance, we encourage advisers to set their fees within the fee caps to have the most streamlined experience possible. However, we understand that in some circumstances a higher fee for particular clients is warranted, given the more complex nature of the advice being provided.
In these circumstances, we will consider requests above the caps, however these requests will require upfront provision of evidence before the fees can be accepted. To request a fee above the caps, we’ll require:
All documents must be uploaded via Request Centre by creating a request and selecting Maintain account fees under What would you like to do?’
When considering your fee request, please note we can’t guarantee each request will be approved and we won’t provide reasoning behind each decision. When our review is complete, we’ll promptly notify you of this outcome.
If approved, we’ll send you a paper form for you and your client to complete.
We start calculating and processing advice fees from the first business day of the month. From the time of calculation, processing and then payment to the advice licensee, this may take up to 10 calendar days and is generally paid within three business days from the time the fee is deducted from the client’s account.
Please consider the time taken to transfer funds between banks and your advice licensee’s processes when on-paying any fees to you.
All advice fees must be provided to us exclusive of GST. We will collect 10% GST in addition to the base fee you and your client have agreed on (which is exclusive of GST).
From 1 June 2024, advice fees which are charged through the platform have ceased to receive the benefit of RITCs. In certain circumstances, fees accrued prior to June 2024 may also be impacted.
The following table explains how this change impacts advice fees charged in different scenarios:
| Scanerio | RITC application |
|---|---|
| Existing fee arrangements (ongoing or fixed term): Advice fees that commenced prior to June 2024 and continue to get charged monthly from June 2024. | RITCs will no longer be claimed and 10% GST will apply to fees charged in the June 2024 fee run onwards. |
| New fee arrangements (ongoing or fixed term): Advice fees that commenced from June 2024 or later. | RITCs will not be claimed and 10% GST will apply to these fees. |
| Deferred fees: Advice fees accrued in May 2024 or earlier and charged in the June 2024 fee run or later. | RITCs will not be claimed and 10% GST will apply to these fees. |
| Closed accounts: Advice fees charged throughout the month for accounts closed in June 2024 or later. | RITCs will not be claimed and 10% GST will apply to these fees. |
Should you need to refund your advice fees to a client, you’ll need to contact us to start this process.
All fee refund requests are subject to review. If approved, we'll calculate the value of the refund (including RITC treatment) and confirm the appropriate method. More information may be required.
If you have full transact authority for your client, you can request a refund by emailing us at wrapsolutions@macquarie.com with the following details:
This process will involve a fee recalculation and may require additional approvals pending the nature of the request.
To learn more, refer to Adviser Tools
Chat in real-time with an adviser consultant Monday to Friday, 8am to 7pm Sydney time (excluding public holidays).
Everyone at Macquarie is commited to providing our clients with the highest standard of products and services available. If you have feedback we would like you to tell us about it.
