New MLC Wrap gives advisers choice on fees

MLC and NAB Wealth have launched their new wrap platform, MLC Wrap, which gives advisers greater flexibility to choose the way they charge their clients.

The wrap offers a range of service fee options for advisers, including flat dollar, asset-based fees, indexed fees, tiered fees or a combination.

Navigator general manager Bruce Hawkins said that given MLC’s position on commissions and moving to fee for advice, the firm saw this service as a critical part of its platform capability.

“We wanted to ensure that advisers had full flexibility around how they would like to be remunerated by their clients … We’re doing that through the platform in a very simple, logical manner,” he said.

“It’s very clear and concise for the client, very transparent in relation to the structure and the pricing mechanism, but trying to streamline the process for the adviser as well.”

The wrap is said to bring together the best of MLC’s existing Navigator and MasterKey Custom platforms by incorporating Navigator’s n-link desktop software, service capabilities and separately managed accounts (SMAs), with MasterKey Custom’s portfolio management tools and integrated self-managed super fund (SMSF) offering.

It has also made in-roads on SMSF capabilities, giving advisers a complete superannuation solution with an extensive compliance and administration service.

According to Hawkins, some parts of this service have been outsourced to increase “scalability”, specifically the adviser and client front-end and the core accounting package.

The approved product list (APL) for the new platform is largely a combination of the Navigator and MasterKey Custom APLs, and includes more than 300 managed funds, ASX listed shares and other listed securities such as exchange traded funds (ETFs), listed investment companies (LICs), interest bearing securities and instalment warrants, as well as cash and term deposits.

With the introduction of the new wrap, MLC said it will continue to develop its popular Navigator platform, but was less certain on the future of the MasterKey Custom platform.

"With MasterKey Custom, we are looking at the future of the product solution there and we've already communicated to the market that we are bringing MasterKey Custom onto the Navigator administration platform," Hawkins said.