Leading big four bank, NAB has announced it will withdraw almost completely from the financial advice sector and is considering a number of ways to separate its advice businesses from the bank.
This separation will also result in the bank moving away from the provision of platform, superannuation and asset management services which operated under a range of brands, including MLC. According to NAB, the MLC business has 1,200 financial advisers, 3,300 staff and $199 billion in assets under management.
The announcement was made as part of the bank’s half yearly results at which it stated the decision had been made after nine-month long review which “determined we could best service the needs of our customers and deliver long term value for shareholders by retaining and investing in a more focussed wealth offering”.
NAB will retain its JBWere business to service high net worth customers, as well as nabtrade for self-directed customers with the other business arms to be separated by demerger, initial public offering or trade sale by the end of 2019.
“Independent ownership will allow for this business to determine its own strategy and investment priorities to better deliver for customers and enhance its competitive position,” NAB stated, adding the move was “…consistent with our plan to become simpler, faster and focused on core banking”.
The bank stated that it expected ongoing arrangements between NAB and MLC would be created to offer NAB customers access to advice, superannuation and asset management services.
