Following an extensive review, MLC Wealth has confirmed it will create a simpler and more sustainable advice business. Part of that plan will see the group exit from the self-employed franchise models of MLC advice stores and NAB financial planning.
Three different brands, Garvan, Apogee and Meritum will be combined to form a new consolidated business while Godfrey Pembroke will focus on high-net-worth clients.
The MLC Advice brand will itself shift to more focssed and segmented offers, with new offices in fewer locations and new advice experience centres to be created.
The announcement by MLC is reminiscent of the new strategy announced by AMP last week which will also see massive reductions across the business.
Chief executive Geoff Lloyd said the changes were part of a multi-year transformation as MLC Wealth prepared for its separation from the NAB Group.
“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 drive better outcomes for clients,” he said.
Mr Lloyd said to meet client needs advice organisations needed to have sophisticated segmentation and to have more defined client markets.
“We believe in the financial and wellbeing benefits professional advice can bring to people’s lives and there will be ongoing demand in 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.
MLC will introduce a simpler pricing model between MLC and advice business owners to provide more optionality and will boost investment in education to deliver higher levels of professionalism.
Further details of the new structure for MLC Wealth’s employed advice network will follow the changes detailed today to take place over the coming months.
“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.
More to come.
Dear Me….Respect…A feeling of deep admiration for someone or something elicited by their abilities, qualities, or achievements (Oxford). Have a good read of the evidence revealed at the Royal Commission and then tell me I should show respect to the management of instos. A company is only as good as the people running it. BTW, they are not my professional colleagues (I’d be embarrassed to describe them as such) and the sooner they are out of the industry the better.
What a total mess.. they are making advisers pay more now for the mistakes of the past bad corporate decisions. Corporate environment creates mediocrity. Have any of them known what it’s like to actually run a business and generate a profit. Clean them out.. not us..
They need to float this group off , so reduce costs internally ie make redundancies , show a profit , NAB to sell it off then who cares ?. New shareholders will then carry the drifting basket
Oh Geoff, you are kidding yourself. You sell the dream of MLC Advice stores to advisers and then shut up shop. Garvan, Apogee and Meritium all vanilla licensees consolidating into one and only last quarter the newsletters talk up strategic value proposition differences between the brands. Once again, fat cats sitting on their huge bank salaries playing BS bingo with people’s lives. Time to move on Geoff and shut up shop at MLC. That beacon is now a crappy $2 torchlight selling at Danos Direct.
Really disappointing to hear some of the childish comments on here re banks and MLC and assumptions (inc some wrong assumptions) about things like service standards, etc.
Bear in mind that you are not slagging the banks or MLC in doing so, you are having a crack at your professional colleagues who happen to work for these insto’s, often diligently working as hard as you and servicing their clients every bit as well as you. Show some maturity and respect towards your fellow professionals or else consider putting your energy into running a better business yourself instead of sharing your negativity here. It serves no-one other than as perhaps an outlet for you to vent your own pent up frustration about your own issues.
short on strategy, short on substance , long on promises and corporate speak , u had an opportunity guys but wasted it again , such a shame and very uninspiring
fan of terry m but not tim m – Terry tried doing that and ASIC made a public execution example out of him as a consequece. Who dares to challenge ASIC or the Big 4 will be Hung by the balls, Drawn and Quartered in the public square of Martin Place
Another bank with almost zero ongoing advice service, totally roasted in the RC and now ditching the impossible to defend world of Vertical Integration Financial Advice.
At least to Pommy pollies had the balls to ban vertical integration. As for out lot, no balls at all. Their answer, keep my future bank consulting job open and let’s just put on more & more & more BS red tape regulation to try to fix the unfixable conflicts of vertical integration.
Our Pollies are hopeless and have allowed the banks to totally screw good Financial Advice until they couldn’t screw it anymore and now the banks run away as fast as possible.
Good riddance big banks, you are disgusting institutions.
Pollies ……. not much worth saying to a bunch unethical political hacks. They should all be made to go back to University and also do Ethics courses
Hollow statements from a very mediocre institution
MLC: life unchanging
In three years MLC Advice will shut shop, and even Tim Steele knows this, and that’s why he jumped off Advice EGM role. If you work for NAB or MLC, my advice you get out now.
Me Lloyd must be having a wet dream. He couldn’t lead a bunch of girl guides. The only thing MLC is good at leading is people down the garden path.
Time to play MBA BS Bingo again
Once again, the advisers are at the mercy of MLC. Geoff has a plan for separation which translates to a big fat bonus and another big fat role for him. Wouldn’t know an adviser if he fell over one. Actually, some of the MLC wealth guys have never seen in on the advice floor…. no kidding! Another one that sits in the ivory tower.
I love that they sell people into the MLC Advice stores and then pull the rug out from under them. The big institutions never seem to lose.
Not sure if advisers will enjoy the consolidation of licensees within MLC. Geoff needs to relieve himself of all the hangers on in there – especially middle management. What a waste.
we need terry m back. terry, come back from your hibernation and lead this industry.
first port of call, fasea please give them a lecture on ethics.
“We are determined to lead and support the industry in driving a new era of professionalism and transparency that drive better outcomes for clients”. Haha,…ye ole mothership steaming by. How many times have I heard that over the last 25 years? How’s that worked for you and the industry so far Geoff? Same old garbage. The sooner someone has the guts to pull the pin on vertical integration the better.