Bank-owned advice group culls low-touch clients

It’s understood that NAB-owned JBWere has written to clients who previously opened a share trading account with the high-net-worth advice group but have only engaged with the firm for one-off general advice over the phone, informing them that their accounts will be closed early in the new year.

The group is referring most clients who fall into this category towards self-directed investing through the bank’s online trading platform nabtrade, depending on the complexity of their circumstances and the frequency with which they invest.

For customers who are offered the option of full-service advice from JBWere, it’s understood advice fees were quoted at up to $10,000 per year depending on the level of service.

The move is thought to be part of a broader push for NAB’s private banking division, including JBWere, to better target wealthy individuals. The bank announced in July it would recruit 50 new bankers and advisers as specialists in the high-net-worth space, with JBWere chief executive Justin Greiner to head NAB’s overall private wealth offering.

It also follows NAB’s middle market wealth business MLC being sold to IOOF, with the ACCC recently clearing the transaction, which is due to complete by June 2021.

JBWere general manager of advice Andrew Bird said the group aimed to “strengthen the financial standing” of its clients through delivering “personalised wealth solutions”.

“Our advisers are able to offer bespoke solutions which cater for a range of client needs and investment requirements allowing us to support individuals, families, institutions and for-purpose organisations,” Mr Bird said.