Following an extensive review, MLC Wealth has confirmed it will create a simpler and more sustainable advice business as part of ongoing work to modernise.
Included in the plan will see exits from two of the self-employed franchise models and a consolidation, all of which have been discussed with MLC Wealth clients prior to announcement.
“What we are doing today will be seen by our network as the next step to build a foundation but also to show that MLC is here to support advice in the country,” said chief executive of MLC Wealth Geoff Lloyd.
The group will exit from the self-employed franchise models of MLC Advice stores and NAB financial planning while consolidating Garvan, Apogee and Meritum to form a new business while Godfrey Pembroke will focus on high-net-worth clients.
The MLC Advice brand will itself shift to more focused and segmented offers, with new offices in fewer locations and new advice experience centres to be created.
Mr Lloyd told ifa that the changes came after extensive consultation with advisers, with their clients being crucial to all MLC’s strategy.
“What was important to us was to work very closely with financial planners, whether that be employed, or self-employed, in our strategy blueprint. We have very deliberately set a scene about transformation, identified our strategic intent and gone about it in an open and transparent way,” said Mr Lloyd.
Included in that was the introduction of a new pricing model which Mr Lloyd said was recognised by advisers as allowing them more customisation.
“There’s a recognition that unbundling of advice from product and the higher level of professionalism means a core offer,” he said.
“That core offer allows us to invest strongly in education and focus on professionalism while unbundling our fees so they can pick and choose what services they want in addition to that core offer.”
Those fees had increased as they moved to a more core offering and there was now greater alignment in the model, which may mean some losses said Mr Lloyd.
“Those fees have increased, it’s a different form of offer invested in the core services by bringing our advice services together and we think that is now a greater alignment for a sustainable advice model going forward. Those fees have increased and yes, I do think our planner footprint should and will reduce,” he said.
Importantly MLC Wealth was not changing its BOLR arrangements with its clients said Mr Lloyd and in fact had a very different proposition from the other major advice networks.
“It’s set up in a way that requires advisers to have tried to have sold their practice beforehand, not to us, to anyone. It’s not a closed market, we don’t propose that their our clients, it’s the adviser’s clients and it has always been based on market valuation, there is no agreed multiple there,” he said.
Mr Lloyd said that a very limited number of advisers were currently in talks with MLC about succession, but the group remained committed to advisers.
“We are here to support all of advice, regardless of if they are employed, self-employed or self-employed under an independent licence,” said Mr Lloyd.
Mr Lloyd, you sold the MLC Advice store dream and now shutting up shop and increasing licensee fees. These muppets just swap licensees and earn big bucks. When is the corporate bs going to stop and get some new blood in this industry.
Supporting your advisers? More like ripping them off by increasing the Licence fee by 61% with only 2 months notice! Consulting with your advisers for the business model? I was never consulted. The banks haven’t changed their way of operation. Now that they can no longer rip off the clients, their profit comes from ripping off their own advisers!
They don’t care who they walk on, they still get the big pay package and float around swapping top jobs.
They are the ones needing to take an ethical learning class.
gotta say hope Geoff’s exit payment on list is linked to practice/ client satisfaction and purely not Nabs ‘thank god thanks gone’ celebration ! Or maybe linked to staffs overall engagement given what i hear is been happening to the good people inside that are being shafted and left in the dark
So the big practices get richer and the smaller ones get shafted. MLC advice store owners got sold a dream that’s now been crushed. Well done MLC another Dealer group crushing advisers with no care.
Charging your own advisers for MLC client related Tech Services is a total joke.
Tell that to the mlc super clients that just recieved letters increasing tpd premiums by 220%! Cant justify keeping clients there with those sort of increases. Not in the clients best interest.
So you should support Advice given that you and corrupt banking mates have stuffed it up