MLC Wealth has announced changes to create a simpler, more focused and sustainable advice business, including exiting self-employed franchise models and consolidating its advice business brands, following an extensive and consultative review.
Chief Executive, Geoff Lloyd, says the changes were part of ongoing work to modernise and strengthen MLC Wealth ahead of its separation from NAB Group.
Lloyd said there would continue to be a strong need for quality advice, both 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,” added Lloyd.
Actions from the MLC Wealth advice review will take place over the coming months and 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
- 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
MLC Wealth confirmed further details on the proposed structure of its 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,” Lloyd said.
MLC Wealth launched a new strategic intent for the business in March this year along with a new operating model including the establishment of four key business pillars:
- Advice
- Retirement & Investment Solutions
- Platforms
- Asset Management
“We are undertaking an ambitious multi-year transformation, to ensure each business unit is individually strong – and collectively stronger under MLC Wealth,” Lloyd said.
“We are determined to lead and support the industry in driving a new era of professionalism and transparency that drives better outcomes for clients,” he added.
The more a Business spends, the higher the fee or premium must be set to recover those expenses.
MLC has spent many hundreds of millions of dollars over the years trying to improve their systems and processes and have stated they will spend hundreds of millions more.
What very few Large Businesses seem to understand, is that there is a cost when they over complicate what they do.
It is very clear what customers want. SIMPLICITY.
This is not what the Industry has achieved.
In actual fact, they have achieved the exact opposite and will be punished going forward, as customers who are confused, become angry and then become EX customers.
This situation will not be resolved until the Industry and Government realise that asking the Legal profession for advice and processes that suits customer needs, is not the right direction.
Australia has become a basket case of red tape and regulations no-one understands, that is strangling all Businesses across all Industries, to the point where they are exiting.
This is a National disaster and the long term implications for all Australia is dire.
Agree with all you have said. Fools in charge have no idea what they are doing. Fun fact Australia has so called business leaders who are visionless nitwits according to the OECD
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