On October 1 this year NAB Financial Planning will launch a new ongoing financial planning offer to new clients, along with a program to move existing clients to the new offer. It will be the public unveiling of a strategy by the bank-owned financial planning licensee to reinvent itself as a stand-alone, profitable advice business, free of subsidies from product or from anywhere else in the wealth management chain.

Head of NAB Financial Planning Tim Steele says the new advice offer was planned for launch on October 1 even before NAB announced it would divest its wealth management business – including NAB Financial Planning – in a transaction expected to be completed next year. However, the spin-off clearly will be a more attractive investment proposition if it includes a profitable advice business.

Steele says NAB FP will offer flat fee-for-service advice, with a clear service promise, priced to profitably serve each individual client.

“It will be an even clearer articulation of our ongoing advice program and what we’re committing to, and at what price,” he says.

“We’ll have the systems in place, in an even more detailed way than we do today, to confirm that those services have been delivered. It’s a clear articulation of the promises we’re making to clients, and an understanding of the cost to serve.”

Steele says the only reason NAB FP can even contemplate being profitable solely from providing advice as a true service is because it owns the advice margin.