AMP looks beyond EU to grow planner numbers
Andrew Mohl
About 5 per cent of the 35,000 customers affected by the AMP Financial Services enforceable undertaking have asked for a review of the advice provided to them, according to the chief executive of AMP, Andrew Mohl.
Mohl told the AMP annual general meeting in Melbourne that around 1,700 of the 35,000 customers who might have had advice to move their superannuation accounts opted to have a free review of that advice, and those reviews were now underway.
Mohl said that if the reviews find there was no reasonable basis for the advice given, AMP will offer to move the customers back to their original fund or funds and also refund all fees and charges associated with both the original move and the switch back.
He revealed that not only was AMP Financial Planning reviewing the files affected by the enforceable undertaking but also those written more than two years ago.
Looking beyond the enforceable undertaking to the future, Mohl pointed to the growth opportunities flowing from the Australian retirement savings market, which he said was forecast to grow at more than 10 per cent a year.
He said to fully capitalise on this opportunity, AMP would be strengthening its core business, including increasing its number of planners and the productivity of those planners.
“We also have to develop complementary advice channels to serve a wider customer base,” he said. “Not everyone wants to see a financial planner face-to-face on every issue, and it’s not economic for planners to see every customer.”
AUTHOR
Mike Taylor
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
