MLC Wealth has announced a massive reduction in fees to win back trust in the market.
Cuts of up to 50 per cent across MLC’s Wrap and retail MasterKey Super and Pension Fundamentals product signify the biggest fee cuts for the company.
MLC Wealth’s chief executive Geoff Lloyd said that the company wanted to take the industry lead in winning back consumer trust.
“We want to lead the industry in winning back trust, and these pricing changes are an important step in showing our clients and their advisers that we have listened to them, and we are changing,” he said.
The administrative fees for Wrap Series 2 platform would be halved to 0.15 of a percentage point per annum on balances between $200,000 and $500,000.
Administrative fees for balances above $500,000 will be cut by 40 per cent to 0.03 of a percentage point per annum as the business moved towards affordability said Mr Lloyd.
“Today’s announcement is one of the biggest fee reductions ever undertaken by MLC Wealth, and signifies the beginning of a new chapter for the business as we work to deliver products and services that are more transparent and affordable to our clients.’’
Mr Lloyd said the reduction represented a saving of 23 per cent and made it one of the cheapest in the country.
“This is great news for clients because it will help grow their super and investment balances faster.’’
MLC’s retail MasterKey Super and Pension Fundamentals product will also cut its fee by 25 per cent to 0.30 of a percentage point per annum for balances up to $200,000 and balances between $200,000 and $800,000 will be reduced from 0.25 of a percentage point to 0.20 of a percentage point per annum.
Mr Lloyd said he was confident that these price changes would help their customers have more money to save towards their retirement.
“We are confident these new price changes will be well received by advisers, with more than 200,000 clients expected to benefit from the lower fees,’’ said Mr Lloyd.
The reform is one of a series of new changes at MLC Wealth which also announced in September that it would no longer accept grandfathered commissions from NAB Wealth superannuation and investment product providers and in October increased the net interest rate paid to Wrap accounts.
“Over the next 12 months, we will be implementing a number of initiatives across the business to ensure our clients have access to competitive fees, and our products and services are meeting their changing needs,” said Mr Lloyd.
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