MLC switches off MasterKey plan service fee

MLC has announced it will will stop deducting plan service fees from its MasterKey Personal Super (MKPS) member accounts, and that all MKPS members will be “fully refunded” for plan service fees paid while in the product.

“Today’s announcement follows ongoing discussions between the trustee and ASIC, with the trustee working with the regulator in order to achieve the right outcome for our members,” said the statement, which was posted on the ASX on Thursday.

MLC/NULIS will be one of the case studies examined during the the royal commission hearings into superannuation, which are set to begin on Monday, 6 August.

MLC has announced it will will stop deducting plan service fees from its MasterKey Personal Super (MKPS) member accounts, and that all MKPS members will be “fully refunded” for plan service fees paid while in the product.

“Today’s announcement follows ongoing discussions between the trustee and ASIC, with the trustee working with the regulator in order to achieve the right outcome for our members,” said the statement, which was posted on the ASX yesterday.

MLC/NULIS will be one of the case studies examined during the the royal commission hearings into superannuation, which are set to begin on Monday, 6 August.

The chief executive of MLC Super, Matthew Lawrance, said the fee was being refunded “because MLC did not clearly communicate to MKPS members that the fee could be turned off if they no longer wanted access to general advice”.

The announcement by MLC follows revelations about ‘fees for no service’ charged by financial advice companies in the April hearings of the royal commission.

“MKPS members regularly received the contact details of their financial adviser through communications such as their annual statements, but where we let our members down is we did not clearly explain that they could elect to not have this service and they could turn off the fee,” Mr Lawrance said.

Mr Lawrance pledged to “work with advisers as the change took place”.

The plan service fee for MLC MasterKey Business Super will also be turned off on 30 November 2018, after which no MLC products will have a plan service fee attached.