MLC changes distribution model
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.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
