MLC completes difficult move to fee-for-service
|
|
MLC’s financial planning businesses have completed a transition to a fee-for-service remuneration structure for all new investment and superannuation clients, a process the company described as “extremely complicated”.
Garvan Financial Planning, Apogee Financial Planning and MLC Financial Planning join Godfrey Pembroke and NAB Financial Planning in the commission-free structure.
But there are many pitfalls for businesses that rush the process and miscalculate pricing models, according to Richard Nunn, executive general manager for MLC advice and marketing.
“We have worked closely with advisers during the past four years to help them re-engineer their business models to be advice and client centric, with transparent and sustainable pricing,” he said.
Not one out of the hundreds of advice businesses MLC had transitioned to fee-for-service had switched back to commissions, Nunn said.
“In fact, the advice businesses that have been operating on fees for several years just keep going from strength to strength.”
Recommended for you
The corporate regulator has announced its first adviser banning of the year with the permanent ban of a Queensland-based former adviser that was sentenced to seven years’ imprisonment.
The Australian financial advice industry has risen by more than 20 advisers this week, with nearly half joining WT Financial and Sequoia.
Two financial advice professionals have shared their tips for success when building an effective Professional Year program as more advisers look to bring on junior staff to their practices.
Numbers are in for 2024, with Wealth Data confirming how many advisers left during the calendar year and which business models saw the largest growth in terms of new licensees.
