Insignia completes NAB/MLC Wealth separation
Insignia Financial has confirmed it has completed the separation of MLC Wealth from NAB, having acquired the firm back in 2021.
Described as one of the largest wealth management separations in Australia’s financial services history, it saw over 700,000 MasterKey and Plum accounts and 55 systems and applications.
The separation means Insignia’s employees now operate entirely within the Insignia Financial operating environment and are no longer reliant on NAB systems and technology.
It has also introduced operational improvements for technology teams to improve its systems and infrastructure management, and moved MLC’s core registry system to the cloud.
The acquisition of MLC Wealth from NAB was carried out by Insignia – which was then known as IOOF – in May 2021 and saw 406 MLC financial advisers join the firm.
Earlier this year, it completed the migration of MLC Wrap and MLC Navigator to the MLC Expand platform. This affected $39 billion in funds under administration (FUA) and 94,000 customer accounts, with the enlarged Expand platform now the third-largest wrap platform by FUA.
Chief executive Scott Hartley said: “Separating MLC from NAB was the most important initiative we had to deliver as an organisation in FY25, and I am pleased to announce this significant separation milestone.
“Following the migration of MLC Wrap, MLC Navigator and associated offers to the MLC Expand platform in April, this separation further demonstrates our ability to deliver complex, large-scale transformation projects.
“While there is still work to be done before we formally exit the Transitional Services Agreement (TSA) in May 2025, achieving this critical milestone sets us up to simplify our Master Trust capabilities and enables us to shift our focus in FY26 towards accelerated and sustainable growth, driven by a relentless obsession with our customers.
“This separation will simplify and streamline processes and deliver significant cost savings with the exit of the TSA. These savings are included in the FY25 net cost reduction of $60–65 million, and in the net BAU opex reduction goal of ~$200 million over FY26–30.”
In October 2022, the firm completed the separation of its pension and investment business from ANZ which saw 1,257 employees transition from ANZ to Insignia, the separation of 638 commercial licence agreements and 589 applications that were separated or migrated from ANZ.
AUTHOR
Laura Dew
Recommended for you
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
In the run-up to heavy losses expected at the end of the financial year, June has already reported consecutive weeks of adviser losses.
ASIC has banned a former NSW adviser from providing advice for 10 years for investing at least $14.8 million into a cryptocurrency-based scam.
ASIC has sent warning notices to social media finfluencers who it suspects are providing unlicensed financial advice to Australians as part of a global crackdown by international regulators.
