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Important updates

Payment of funds in closed MLC Wrap and MLC Navigator accounts

September 2014

We found errors relating to how income, fees or tax were applied to some accounts on the MLC Wrap and MLC Navigator platforms. A detailed list of the products* impacted can be found below.

We're sorry for this and any inconvenience this may cause.

Am I impacted?

If you closed your MLC Wrap and MLC Navigator account between 2002 and 2014 you may have been impacted. If you've been impacted we'll write to you at your last known address.

How have we fixed this?

We've improved our processes, systems and controls that led to these errors. In addition, customers impacted will receive payment of funds owed to them as well as interest on these funds.

What errors were found?

The following errors were identified.

Type of Error Description
Unpaid income Some customers were underpaid interest owing to them from the September 2011 quarter when their MasterKey Custom account was moved to MLC Wrap. This was due to the transition from monthly to quarterly crediting of interest.  
Between March 2011 and February 2012 some customers were paid less quarterly interest on their cash than was owed to them.
Less interest was paid than was due to some customer accounts for their 2011 / 2012 tax refund.
In September 2011, when some customer accounts were moved from Masterkey Custom to MLC Wrap some customers received incorrect dividend payments.
Between January 2002 and December 2012 a proportion of the investment income that was due to some customers was not paid at the time they sold or transferred their investment.
From June 2005 to September 2014 some customers were not correctly paid dividend income on their investments when they transferred these investments to another account.
Between December 2012 and August 2014, some customers were not paid funds due to them after they closed their account.
Fees Due to a processing error some customers were charged management fees twice in March 2012.
In September 2011, some customers were overcharged management fees. This happened because some of their assets were overvalued.
Between April 2003 and December 2011 we did not correctly pay fee rebates to some customers.
Between April 2003 and August 2014 some errors were made in the processing of fund manager fee rebates on some accounts.  
Tax A tax credit was not correctly applied to some accounts, on certain transactions between October 2004 and May 2013.
Some customers were not paid the tax refund owing to them for the 2010/2011 and/or 2011/2012 financial years when they migrated or closed their MasterKey Custom account.
Between July 2005 and December 2012 we incorrectly calculated and applied ATO franking credit amounts for some of our customers.
During the period 1st April 2003 to the 19th May 2013 we incorrectly applied GST on some fund manager fee rebates.


If you've heard from us about funds in your closed account and would like more information or if your address has changed since you closed your account and you would like to know if you have been impacted, please call us on 132 652 between 8am and 6pm (AEST).

*Products impacted include:

Investment products MLC Wrap Investments Series 2, MLC Wrap Investments, MasterKey Custom Investment Service (FlexiInvestment Service), MLC Wrap Self Managed Super Series 2, MLC Wrap Self Managed Super, MasterKey Custom Self Managed Super (FlexiSelf Managed Super Service), MLC Navigator Investment Plan Series 2, MLC Navigator Investment Plan (Navigator Personal Investment Plan), blueprint Investment Plan, DPM Investment Service, Enevita Platinum Portfolio Investment Solution Series 2, Enevita Platinum Portfolio Investment Solution, FC ONE Investment Builder Series 2, FC ONE Investment Builder, Portfoliofocus - Premium Investment Service, PremiumChoice Investment Service Series 2, PremiumChoice Investment Service, St Andrews Investment Plan, Navigator Access Investment, Portfoliofocus - Essentials Investment Service

Superannuation products MLC Wrap Super Series 2, MLC Wrap Super, MasterKey Custom Superannuation (FlexiSuper Fund), OneSource Personal Superannuation & Rollover Fund, OneSource Personal Pension Plan, MLC Navigator Retirement Plan Series 2, MLC Navigator Retirement Plan (Navigator Personal Retirement Plan), blueprint Retirement Plan, DPM Retirement Service, Enevita Platinum Retirement Management Solution Series 2, Enevita Platinum Retirement Management Solution, FC ONE Retirement Builder Series 2, FC ONE Retirement Builder, Portfoliofocus - Premium Retirement Service, PremiumChoice Retirement Service Series 2, PremiumChoice Retirement Service, St Andrews Retirement Plan, MLC Navigator Access Super and Pension (Navigator Access Super and Pension), Portfoliofocus - Essentials Super and Pension Service