MLC completes difficult move to fee-for-service
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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.”
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