Remserv stuffs MMS

The suspension by the Qld government of Remserv's ability to quote on new car leases is unprecedented.

The attempts by MMS management to downplay the significance of this development is breathtaking as it has ramifications are both immediate and futuristic

While it will hit the immediate bottom line of MMS it is the long term future of the company which is brought into focus.

Providers of salary packaging administration services such as Smart Salary,Remunerator,Selectus, Advantage and the multiple others offering such services such as Epac and Salsac will will no doubt be eagerly awaiting the outcome of the in depth investigation into the Remserv practices.

Contracts to supply such services are won by tender.

It is hard to see a prospective employer client not running a fine ruler over any MMS tenders in the future and not being influenced by current events or other clangers such as Remserv staffer being able to swindle $500,000 from clients accounts in Queensland a little while ago.

The power of the internet means that what is already out there stays out there.

The other question occupying many minds in the industry who haven't already shorted the bejesus out of MMS is the likely imposition of new conditions to diminish the conflict of interest thrown up by the administrator also acting as product provider and advice provider.

Does the Queensland government revert to its earlier model of only allowing novated advice and lease set up to be done independent of the administrator or does it impose the condition of insisting that its employees receive independent quotes in addition from any supplied by Remserv.

How much is it costing MMS to have an entire car leasing sales force sitting idle in Brisbane and around the state while this situation remains in limbo.

The meeting with the new CEO and the Board could also be interesting given his oversight of the Remserv operation as its general manager for many years here in Queensland.

I think my short on MMS is on pretty safe ground as the market digests this latest series of events.

iSHMAEL

unlike Remserv I do declare my conflicts of interest but let the facts speak for themselves