There will be no change in the day-to day operations of MLC’s advice network right through to its asset management businesses, following Thursday’s announcement by National Australia Bank (NAB) that it would be looking to offload the subsidiary by the end of 2019.
MLC Super chief executive Matthew Lawrance said the business’s customers, investors and members would continue to be “looked after,” which has always been the case.
“It’s ‘play on,’” he said. “Things can change and play out over the next 12 months, so we’ll just make sure that the best option is chosen for the establishment of a really strong, independent wealth business.”
“It’s business as usual for advisers and our wealth business, and it’s very exciting in terms of planning for an independent wealth proposition that we think will be stronger and better than ever before.”
Lawrance said MLC would also continue to invest in its core business, whether it’s in the advice areas in terms of data and analytics, digital tools, monitoring and compliance, or through the simplification and improvement of products and platforms.
“We’re specifically looking at our MySuper product, which I’ll have more to talk about later,” he said.
And when it comes to the investment management business, Lawrance said it would continue to have the best investment professionals in the market, while providing the best returns both before and after fees for all its customer segments.
Speaking to journalists earlier on Thursday, NAB CEO Andrew Thorburn said while the complexity within the big bank was “killing” it, the sale of MLC did not signal NAB’s wholesale exit from the wealth management space, given it would be retaining JBWere and NAB Trade.
“But, when we look at MLC, you know, we feel it’s a good business, and I think with some independent ownership and greater investment, it can really be a very sustainable and growing business in the whole superannuation field,” he said.
“And, so what MLC divestment will do is enable us to have a simpler bank – and there’s huge opportunities in the bank.
“It’s worth noting that the MLC earnings are only four per cent of our total, so they’re quite small. But, once we divest it – and we intend to divest it by way of public market, so either a demerger and IPO, or maybe a trade sale – I think it will be a very significant business.”
