MLC will use intermediaries to distribute its range of Corporate Solutions products rather than going direct to market as it has done in the past.
This means financial planners and advisers will now be able to deliver a bundled superannuation and investment solution to businesses, organisations and their employees, offering clients access to a range of products and services.
The products to be included under the new bundling arrangement are MLC MasterKey Business Super, Flexiplan Executive Choice, The Employee Retirement Plan, Your AdvantEdge and workplace financial planning.
The decision follows the announcement in September by MLC Corporate Solutions to revise the structure of its small and medium enterprise business, so that it based itself around client segments rather than around function.
“Our focus is around providing clients with a 100 per cent solution, entrusting us to solve issues with their entire investment,” says MLC Corporate Solutions chief executive officer Martin Crawford.
According to MLC Corporate Solutions business super distribution general manager John James, the new business model marks a change to the historical distribution model within MLC Corporate Solutions.
“Basically it uses intermediaries to distribute product rather than going direct to the marketplace, which is a new business model that is effectively an outsourcing solution,” he says.
James believes financial planners and intermediaries will be attracted to the new distribution proposal because it will help them to both retain clients and grow their business.
Further, he says those financial planning businesses that are successful in attracting corporate relations will create a higher sale value for their business, compared to those with many individual clients.
The new distribution model will capitalise on MLC’s ownership of some of the largest dealership groups in the market, including Garvan Financial Planning, Apogee Financial Planning and Godfrey Pembroke Financial Consultants.
However, MLC Corporate Solutions also plans to utilise both tied and untied intermediaries, and with some 5,000 independent financial advisers in the Australian market, MLC says it is keen to get some of these on board.
