15 Aug 2019

MLC Wealth provides update on advice review

MLC Wealth today confirmed changes to create a simpler, more focused and sustainable Advice business, following an extensive and consultative review.

Chief Executive Officer, Geoff Lloyd, said the changes were part of ongoing work to modernise and strengthen MLC Wealth ahead of its separation from NAB Group.

In March 2019, MLC Wealth launched a new strategic intent for the business and a new operating model including the establishment of four key business pillars of Advice; Retirement & Investment Solutions; Platforms; and Asset Management.

“We are undertaking an ambitious multi-year transformation, to ensure each business unit is individually strong – and collectively stronger under MLC Wealth,” Mr Lloyd said.

“Today we’re taking foundation steps for the Advice business. We are determined to lead and support the industry in driving a new era of professionalism and transparency that drives better outcomes for clients.”

Outlining the new direction, Mr Lloyd said there would continue to be a strong need for quality advice – for individual clients and to support a strong economy, as the influence of the national retirement savings pool grows.

“We believe in the financial and wellbeing benefits professional advice can bring to people’s lives and there will be ongoing demand with record household wealth and an ageing population – and more than $3 trillion to be transferred between generations of Australian families over the next two decades,” he said.

“To meet client needs, advice organisations of the future will have sophisticated segmentation and a commitment to deliver great experiences to more defined client markets.”

Confirmed actions from the MLC Wealth advice review include:

  • Bringing together employed advisers under the MLC Advice brand:

– more focussed and segmented offers

– new professional offices in fewer locations

– new advice experience centres

  • Simplifying Advice licenses, going forward with two, down from five[1]
  • Consolidating advice business brands:

– Godfrey Pembroke, focused on high net worth clients

– A new combined group of advice businesses previously aligned with Garvan, Apogee and Meritum brands

  • Exiting self-employed franchise models – MLC Advice Stores and NAB FP self employed
  • Introducing a simpler pricing model between MLC and advice business owners, which provides more optionality through a ‘core’ plus ‘specialist’ service model, while better reflecting the cost of sustainable licensing services
  • Boosting investment in education to deliver higher levels professionalism and compliance, including peer networks and coaching programs
  • Creating one Advice support team to serve employed advisers and advice businesses, delivering a stronger client focus with improved consistency and efficiency

The changes detailed today will take place over the coming months. Further details on the proposed structure of MLC Wealth’s employed advice network will follow.

“We are in an important transition period as we refocus and reshape the business. We will continue to support our advisers and engage widely to ensure we deliver the new model in the right way,” Mr Lloyd said.

[1] Subject to regulatory approvals

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