Centrepoint Alliance has persuaded 200 of its 226 adviser businesses to adopt a new pricing model before grandfathered life insurance commissions are removed in two years.

The new arrangements started this month. The wealth manager introduced the pricing strategy last year in search of a more contemporary advice and business model.

CEO Angus Benbow says fee-based revenue is needed to offset an accelerated decline in Centrepoint’s rebate revenue.

“Over the second half of [2018/19] we have seen a significant acceleration in the reduction of grandfathered rebates, which further validates our refresh strategy to move to a contemporary and transparent offering,” he said.