It’s understood that NAB-owned JBWere has written to clients who previously opened a share trading account with the high-net–worth advice group but have only engaged with the firm for one-off general advice over the phone, informing them that their accounts will be closed early in the new year.
The group is referring most clients who fall into this category towards self-directed investing through the bank’s online trading platform nabtrade, depending on the complexity of their circumstances and the frequency with which they invest.
For customers who are offered the option of full-service advice from JBWere, it’s understood advice fees were quoted at up to $10,000 per year depending on the level of service.
The move is thought to be part of a broader push for NAB’s private banking division, including JBWere, to better target wealthy individuals. The bank announced in July it would recruit 50 new bankers and advisers as specialists in the high-net–worth space, with JBWere chief executive Justin Greiner to head NAB’s overall private wealth offering.
It also follows NAB’s middle market wealth business MLC being sold to IOOF, with the ACCC recently clearing the transaction, which is due to complete by June 2021.
JBWere general manager of advice Andrew Bird said the group aimed to “strengthen the financial standing” of its clients through delivering “personalised wealth solutions”.
“Our advisers are able to offer bespoke solutions which cater for a range of client needs and investment requirements allowing us to support individuals, families, institutions and for-purpose organisations,” Mr Bird said.
In reality, both retail & wholesale investors want to make a good return on their capital, without putting their capital at undue risk. Plus they want someone to answer the phone/email, when they contact you. The rest of it is a load of waffle, & always has been.
The wholesale lurk has got to be the next domino to fall.
Oh, that and the MDA nonsense.
How about just, for a change – and stay with me here – these groups stop trying to ram their businesses through loopholes and, you know, work to actually comply with the laws.
I know, I know, it’s a controversial idea.
I’m really tired of these punters constantly pushing the envelope to make a few bucks, while avoiding the laws put in place to protect clients from the last time these same punters broke the system.
Also, stockbroking is to financial advice what astrology is to astronomy, just quietly.
I think you have the wrong angle. Labour and ASIC are out to get retail financial advice so everyone goes into industry funds. This seems like a very sensible idea by JBW.
true, the ‘sophisticated investor’ thing is the holy grail, and the final loophole
Wholesale clients still require Advice. Just because some one earns $250k pa or has significant assets does not mean they actually understand investments or impacts of their actions. A great strategy to avoid providing advice and charge implementation fees. If only all advisers could have clients sign a one page declaration…..
Cost of compliance delivers crap outcomes for mum and dad consumers.
AGAIN !!! STILL !!!!
When will this Government learn?
They don’t care, when will you learn
This is the new strategy for all banks. Only offer advice to clients that meet the “wholesale” definition, so that they can avoid the overly complex regulation associated with retail clients.
By making licensed advice unnecessarily complex and expensive, regulators are driving more and more consumers into high risk alternatives. Mayfair Platinum, copy trading, SMSF spruiking, CFD trading. These have all been huge beneficiaries of our regulators’ anti adviser approach.
The irony being that the complex regulation for retail clients exists because these same banks poisoned the well so completely – before bailing out, of course.
absolutely
Andrew Bird said the group aimed to “strengthen the financial standing” of its clients through delivering “personalised wealth solutions”.
Are you sure it isn’t about being able to treat all clients as wholesale and then not having to worry about ASIC knocking on your door for poor advice……