MLC Wealth has made a number of changes to the pricing of its Wrap, MasterKey Super and Pension Fundamentals products, claiming administration fee reductions of up to 50 per cent.
From February 4, the administration fees for MLC’s retail Wrap Series 2 platforms will be halved to 0.15 per cent a year on balances between $200,000 and $500,000.
Fees on balances above $500,000 will be cut 40 per cent to 0.03 per cent.
MLC Wealth chief executive Geoff Lloyd says that, based on an average balance of $480,000, the new administration fee structure will represent a saving of 23 per cent on the Wrap platform.
Clients with up to four family members will be treated as one group. Annual administration fees will be capped at a maximum of $3600 per superannuation family group and $3000 per investment group.
From April 1, MLC will also lower the administration fee for retail MasterKey Super and Pension Fundamentals products.
For balance up to $200,000, the administration fee will be cut by 25 per cent to 0.3 per cent. Fees for the balances between $200,000 and $800,000 will be reduced from 0.25 per cent to 0.20 per cent.
The flat fee for balances under $50,000 will fall from $130 to $78 a year.
Lloyd says the price changes will benefit more than 200,000 clients.
The latest changes follow MLC Wealth’s announcement last September that NAB Financial Planning and NAB Direct Advice would no longer accept grandfathered commissions from NAB Wealth superannuation and investment product providers.
And in October it increased the rates on its cash funds
Lloyd says: “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.”