A new chief executive will take the helm at National Australia Bank’s soon-to-be-divested wealth unit, amid growing regulatory pressure faced by wealth-management firms following a string of scandals, including in financial advice and life insurance.

Taking the reins at NAB’s MLC business is former Perpetual boss Geoff Lloyd, as the big-four bank seeks to divest the wealth arm by the end of next year, potentially in a new sharemarket listing.

Lloyd, who left the Australian investment and trustee group in June after a six-year run as CEO, will commence his new role in September and will work closely with NAB chief Andrew Thorburn on the divestment of MLC, The Sydney Morning Herald reported.

“The core MLC wealth-management business is strong with great growth prospects and I am confident Geoff will not just assist in a successful transaction but also help realise the full potential of the new business,” Thorburn said.

Prior to Perpetual, Lloyd worked in senior roles at BT Financial Group and St George.

NAB acquired MLC in in 2000 for $4.5 billion. It has since sold off its life insurance operations but still holds its financial advice, superannuation, and funds-management businesses. A demerger of MLC is expected to rake in roughly $3 billion, SMH said.

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