Significant Event Notice to clients - May

We’re writing to all North clients between 6-31 May 2024 via a Significant Event Notice (SEN) to let them know we’re making updates to some Terms and Conditions, related to their account.

The changes, if applicable, will be automatically applied to accounts.

There is no immediate action required from clients, other than to read the message and understand the changes.

What’s included in the client message?

The SEN will include the following product updates:

ATO changes to GST for member/client advice fees, effective 1 July 2024

• The ATO is removing the ability for North to claim the RITC (on your client's behalf) for member/client advice fees. Clients will now pay all of the GST on their member/client advice fees.
• Read the ATO notice from December 2023.
• North will continue to monitor further regulatory developments in relation to RITC and will communicate with you if this policy changes.
• Note: You will be communicated to separately via Product Flash in mid-May on how this change will impact your AMP Super clients (if applicable).

Changed features for unadvised clients, effective 25 March 2024

• If clients become unadvised, with no adviser attached to their account, they will now have limited access to investment options. An option will be limited where it’s TMD states that it should only be distributed through personal financial advice.
• These limitations only apply where an unadvised client is entering a new investment option. Unadvised clients can continue to invest further in any of their existing investment options.
• We’re obligated to let clients know about this, however this message will also promote the benefits of having an adviser as more investment options are available through an adviser.
• There are no impacts to your clients, unless they become unadvised.
  

 Updates to our Death benefit nomination and payment processes, effective 1 July 2024

• When submitting a Non-lapsing nomination, clients will no longer be required to have their nomination signed and dated in the presence of witnesses.
• Where a member passes away without a valid nomination, we’ll pay the death benefit to the member’s estate.
• We’ve also made some minor updates to terminology to make the death benefit nominations easier to understand.
  

There are potential tax implications to consider when a death benefit is paid, so we would still encourage you to ensure your clients have a valid death benefit nomination in place.

Please read the Death Benefit updates article in North News for further details around these changes.

What do I need to do?

Please ensure your clients are aware of the changes and options available to them.

More information

The following support materials are available to help you understand these changes:

• Sample client Significant Event Notices (SENs):
  • Super & Pension
  • Investments (IDPS)
• FAQs
• The ATO notification
• The North News ‘Updates to the Death Benefit process’ article.

If you have any questions about the changes, please speak to your Business Development Manager.