Advice about more than product selection
Too many self-interested parties have sought to dumb down the definition of financial advice to just product selection, according to AMP Limited chief executive, Craig Meller.
Delivering a speech in which he emphasised the value of vertical integration, the AMP CEO said he believed that, in reality, product selection represented the least important component of high quality financial advice.
"Too many usually self-interested parties like to dumb down the definition of financial advice to just product selection," he said. "This is usually a ruse to justify a particular entrenched position — and is a million miles from where the true value of advice lies."
Extolling the virtues of vertical integration, Meller said AMP was committed to the model because it had allowed the company to:
Invest more in financial advice than any other business,
Bring in more advisers to the industry than any other business,
Train our advisers to higher standards,
Then stand behind the advice the company provides.
"We believe there's no greater level of consumer protection than that," he said.
"At AMP we support higher industry standards — and have indeed led the way on this, we support higher entry-level qualifications, and an ASIC-managed register of financial advisers," Meller said. "But like any profession, we need to prove we can regulate ourselves effectively. And I believe we can."
Recommended for you
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
