Count Financial is expected to suffer a 60% decline in revenue due to the ban on grandfathered commissions in two years, according to its new owner CountPlus.

Extraordinary general meeting documents for the former Commonwealth Bank advice arm reveal a significant sum is derived from legacy revenue streams, including platform rebates and investment trail commissions.

“While Count may benefit from legacy income until January 2021… there is accordingly a risk that the loss of the licence advice fees and grandfathered commissions will have a material impact on Count’s revenue, and therefore profitability,” the documents say.

Commonwealth recently sold the advice group to CountPlus for $2.5 million – a significant loss. It bought the company from founder Barry Lambert less than a decade ago for $343 million.

CountPlus was launched as a subsidiary of Count Financial in 2006 and is listed on the sharemarket. It holds equity in 15 Count Financial member businesses.

It plans to revamp Count Financial’s pricing model to match its own evolving model.

CountPlus says platform providers may try to terminate their arrangements after new remuneration rules come into force.

Commonwealth will continue managing customer remediation arising from issues at Count Financial and will provide a $200 million indemnity to CountPlus for all claims notified to the bank within four years of the sale.

Elsewhere, Advice group Centrepoint Alliance has persuaded 88% of its member businesses to adopt a new pricing model before grandfathered commissions are removed.