Westpac has confirmed it will make its termination payment to the Head Group, and each Head Group is responsible for deciding how that payment is apportioned to advisers under its own arrangements.

Westpac has also confirmed that while the calculation references trail, the termination payment itself is not trail.

For KAN members, this means termination payments will be handled based on where your trail sat at the relevant time.

• KAN will only pay termination amounts relating to the period from when your trail transfer was processed into KAN and reflected in the relevant records.

• KAN will not pay termination amounts relating to periods before your transfer into KAN.

• If you are expecting a payment for any period prior to your transfer, please contact your previous aggregation group directly.

• If you transferred out of KAN and your book moved with you, any termination payment relating to the period after your transfer should generally sit with your new aggregation group, once that transfer was processed.

• KAN will only deal with termination amounts relating to the period where the trail remained under KAN.

• Where a trail book has been sold, the treatment of any termination payment will depend on the sale and purchase arrangement and the decision of the relevant FAP or business.

• If your agreement does not specifically address termination payments, the FAP will need to make a reasonable apportionment decision and document the basis used.

The termination payment is calculated as two times the trailing commission paid to the Head Group in the 12 months prior to termination (1 June 2025 – 31 May 2026). We expect Westpac will make this payment to the Head Group in full at the start of June but the exact date is TBC.

KAN expects to process the termination payment progressively across June 2026, in line with the timeline proposed. This timeline below is the earliest indication of payment to FAPs. Once KAN receives Westpac’s payment we will require 2-3 business days to reconcile the transactions.

This means advisers should expect the termination payment to be processed progressively across June 2026, rather than as one single bulk payment on day one.

1. What is the Westpac termination payment?

Westpac has stopped paying residential finance trail and is making a final termination payment to the Head Group. Westpac has confirmed the payment is calculated by reference to trail, but the termination payment itself is not trail. Westpac is paying the Head Group, and each Head Group is responsible for deciding how that payment is distributed under its own arrangements.

2. Is the termination payment the same as a trail payment?

No. It is not a trail payment, even though it is based on trail information.

3. How will KAN make the payment?

KAN will pay termination amounts for periods where the relevant trail was held under KAN.

KAN will not pay amounts for periods that sat under another Head Group.

4. When will KAN make the payment?

KAN expects to process the termination payments progressively across June 2026, after Westpac sends payment, in a separate commission run from the usual upfront and trail payments that you receive daily.

5. I transferred into KAN. What will KAN pay me for?

KAN will only pay termination amounts relating to the period from when your trail was held under KAN.

6. Will KAN pay me for the period before I joined KAN?

No. If you transferred into KAN from another aggregation group, KAN will not pay termination amounts relating to periods before your transfer into KAN. You should contact your previous aggregation group directly about any termination payment for the period before your transfer.

7. Who do I contact about any pre-transfer amount?

Please contact your previous aggregation group directly.

8. If my transfer to KAN was processed later than my actual move date, what happens?

KAN will generally treat the payment as starting from when the trail was actually reflected under KAN in the relevant records. KAN will not pay for periods before that point, as those periods sat with your previous aggregation group.

9. I transferred out of KAN. Will KAN still pay me?

KAN will only deal with termination amounts relating to the period where the trail remained under KAN. For periods after your transfer out, you should contact your new aggregation group.

10. I transferred out of KAN and took my book with me. How will this work?

Any apportionment will depend on when the transfer took effect, when the trail transfer was processed, and what agreement applies between the parties. KAN will generally only deal with amounts relating to the period where the trail sat under KAN.

11. I left KAN or resigned. Do I still get paid directly?

Not usually. Where an adviser has left KAN or resigned, KAN will generally pay the FAP or business on record, unless there is clear documented evidence that the payment should be directed elsewhere.

12. What if KAN does not know where I went after I left?

KAN’s default position is still to pay the FAP or business on record, unless there is a clear documented reason to do otherwise.

13. If I left KAN but my clients stayed with the FAP, who gets the payment?

In that situation, the termination payment would usually stay with the FAP or business that retained the book, unless there is a documented arrangement saying otherwise.

14. If I moved from one KAN FAP to another, do I automatically get the full termination payment?

No. Not automatically. The termination payment should usually follow the book or trail ownership, not simply the adviser’s movement between FAPs.

15. If I moved internally to another KAN FAP but did not take any clients with me, do I still receive the full payment?

No, not usually. If you moved to another FAP but did not take the clients or book with you, the payment would usually remain with the FAP that retained the book, unless there is a documented agreement saying otherwise.

16. If I moved internally and took some of my book with me, what happens?

In that case, the payment would usually need to be apportioned based on what part of the book moved, when it moved, and who held the economic ownership of the book during the relevant period.

17. I sold my book. Who receives the termination payment?

That depends on the sale and purchase arrangement and the decision of the relevant FAP or business. Usually termination payments will go to the purchaser of the book.

18. What if my sale agreement does not mention termination payments?

If the agreement is silent, the FAP or business will need to make a reasonable apportionment decision based on the effective date, when the trail transfer was processed, and who held the economic ownership of the book during the relevant period.

19. If I sold my book to a business outside KAN, will KAN pay that buyer directly?

Not automatically. KAN will generally pay the contracted FAP or business on record unless there is a clear approved arrangement to do otherwise.

20. I signed over clawback, pipeline and liabilities when I transferred. Does that mean I also signed over the termination payment?

Not automatically. Because the termination payment is not technically trail, signing over clawback, pipeline and liabilities does not automatically decide who gets the termination payment. That depends on the wording of the relevant transfer or sale agreement.

21. So am I still entitled if I signed over trail-related items?

Possibly. If your agreement only refers to things like clawback, pipeline, liabilities, and trail, and does not clearly cover termination-type payments or all future economic benefits of the book, entitlement to the termination payment may still need to be decided separately.

22. Will KAN work through private disputes between advisers, buyers, sellers or former aggregation groups?

No. KAN can explain how it is handling the payment within KAN, but private entitlement or apportionment issues will usually need to be worked through by the relevant parties based on their own agreements and records.

23. How should FAPs handle advisers who transferred out and took their book with them?

KAN recommends that FAPs confirm the effective date of the transfer, confirm when the trail transfer was processed, separate the pre-transfer and post-transfer periods, identify who held the economic ownership of the book during each period, apply any relevant agreement, and document the basis used for the split.

24. How should FAPs handle advisers who sold their book?

KAN recommends the same approach: confirm the effective sale date, confirm when the trail transfer was processed, identify who owned the book during the relevant period, apply the sale and purchase agreement if there is one, and if the agreement is silent, make a reasonable documented decision.

25. Does Westpac decide how the payment is split between advisers or businesses?

No. Westpac has confirmed it is paying the Head Group and is not determining the onward split between advisers, FAPs, or aggregation groups.

26. Why might my payment not match what I expected?

This can happen where there has been a transfer into or out of KAN, an internal FAP move, a resignation, a book sale, or a private commercial arrangement between parties. Because the termination payment is not trail, and because Westpac is paying the Head Group rather than individual advisers, KAN may need to apply internal rules or rely on the relevant FAP or business arrangement.

27. What should I do if I think my payment is wrong?

First, check when your transfer or sale took effect, when the trail transfer was processed, which aggregation group held your trail during the relevant period, and whether you have any agreement covering sale, transfer, or future entitlements. If your question relates to the period before you joined KAN, please contact your previous aggregation group directly.

28. Who should I contact if I still have questions?

If your query is about a period before you joined KAN, contact your previous aggregation group. If it is about a period after you left KAN, contact your current aggregation group. If it is about a payment made within KAN, contact your KAN FAP or business first.

Where an adviser has transferred out, taken their book, or sold their book, KAN recommends the following simple process:

1. Confirm the effective date of the transfer or sale.

2. Confirm when the trail transfer was processed in the commission records.

3. Split the relevant period into pre-transfer or pre-sale and post-transfer or post-sale periods.

4. Identify who held the economic ownership of the book in each period.

5. Apply any sale and purchase agreement or internal agreement.

6. If the agreement is silent, make a reasonable documented apportionment decision.

7. Keep a record of the dates used, the calculation method, and the amount allocated to each party.