Coronavirus: NAB’s wealth arm, MLC, waives adviser licence fees for three months

NAB’s estimated loss of revenue as a result of the fee waiver will run to between $4m and $5m.

Alongside the licensee fee changes, Mr Lloyd announced extensions to fixed-term advice agreement transitions. Picture: Getty Images

NAB’s wealth arm, MLC, has waived licence fees for its aligned advisers for the next three months in a move that will see it forgo up to $5m in revenue.

As part of a support package to help advisers through the COVID-19 crisis, MLC chief executive Geoff Lloyd said no licence fees would be payable between April 1 and June 30, and licence fees would be discounted by 50 per cent from July through to September.

“This period isn’t like any other market correction or community health issue. Our responsibilities are vastly different to recent memory or what we thought 2020 would bring,” Mr Lloyd said in a note to advisers, viewed by The Australian.

NAB’s aligned adviser numbers currently stand at about 500, and its estimated loss of revenue as a result of the fee waiver will run to between $4m and $5m.

Professional indemnity insurance fees will continue to be charged through the six-month period.

Alongside the licensee fee changes, Mr Lloyd announced extensions to fixed-term advice agreement transitions which were due to start on April 1. The start date has been pushed to July 1, with the completion date also extended by three months to June 30 next year.

Platform transitions have also been delayed to July, Mr Lloyd said.

Small business support also formed part of the package, with Mr Lloyd urging advisers to get in touch with MLC if they were experiencing financial stress.

“NAB is very much open for business and we can connect you to the right people,” he wrote to advisers.

NAB chief Ross McEwan on Monday said he expected the COVID-19 fallout would result in the unemployment rate climbing to “shockingly high” levels and the economy would take a “very, very large” hit to gross domestic product in the June and September quarters.

“This adviser support package is all about reducing pressure so you have more time with clients. It recognises the community importance of your role in this crisis, and I hope it helps,” Mr Lloyd said.