MLC Wealth today announced sweeping price changes across its Wrap and retail MasterKey Super and Pension Fundamentals product which will deliver administration fee cuts of up to 50 per cent.
“We want to lead the industry in winning back trust, and these pricing changes are an important step in showing our clients and their advisers that we have listened to them, and we are changing,” said Geoff Lloyd, MLC Wealth CEO.
“Today’s announcement is one of the biggest fee reductions ever undertaken by MLC Wealth, and signifies the beginning of a new chapter for the business as we work to deliver products and services that are more transparent and affordable to our clients.’’
Effective from 4 February, the administration fees for MLC’s retail Wrap Series 2 platforms will be halved to 0.15 per cent per annum on the balance between $200,000 and $500,000. Administration fees for the balance above $500,000 will be cut 40 per cent to 0.03 per cent per annum.
“Based on an average balance of $480,000, the new administration fee reduction will represent a saving of 23 per cent on the Wrap platform, making our platform one of the cheapest in the country,’’ said Mr Lloyd.
“This is great news for clients because it will help grow their super and investment balances faster.’’
Under the pricing changes, clients with up to four family members will be treated as one group, and annual administration fees will be capped at a maximum of $3,600 per superannuation family group and $3,000 per investment group.
MLC will also be lowering the administration fee for its retail MasterKey Super and Pension Fundamentals product, which will come into effect from 1 April.
For balances up to $200,000, the administration fee will be cut by 25 per cent to 0.30 per cent per annum. Fees for the balance between $200,000 and $800,000 will be reduced from 0.25 per cent to 0.20 per cent per annum.
The flat fee for balances under $50,000 will fall from $130 to $78 per annum.
Over the past six months, MLC Wealth has made some key changes to improve client outcomes:
- Last September, it was announced that NAB Financial Planning and NAB Direct Advice would no longer accept grandfathered commissions from NAB Wealth superannuation and investment product providers.
- On 1 October 2018, the net interest rate paid was increased by up to 0.75 per cent a year for Wrap Cash Accounts. Rates for the MLC Cash Fund increased by up to 0.48 per cent a year throughout the year.
“We are confident these new price changes will be well received by advisers, with more than 200,000 clients expected to benefit from the lower fees,’’ said Mr Lloyd.
“Since joining MLC Wealth in September, I have been working with my leadership team to modernise and improve our business for the benefit of our clients. ‘’The pricing changes we have announced today represents one of those reforms.
‘’Over the next 12 months, we will be implementing a number of initiatives across the business to ensure our clients have access to competitive fees, and our products and services are meeting their changing needs.’’