MLC Wealth to drastically reduce advice business
MLC Wealth has announced a radical transformation strategy that will see it exit some advice businesses and consolidate others.
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.
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]
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