AMP NZ advisers unimpressed by package
AMPaffiliated financial advisers in New Zealand are thumbing their noses at a proposed support package by the company to help them through the de-merger process.
One of the biggest gripes from advisers across the Tasman is that although AMP has increased commissions on unit trust products, its offer is not worth anything given they predominantly sell Personal Retirement Plans (superannuation funds) and not unit trusts.
In Australia, the company rolled out a $5 million package to help support advisers suffering as a result of the company’s corporate woes.
The highlight of that package was a 10 per cent reduction in dealership fees, also including support for planners who educate clients about the proposed UK de-merger, as well as new performance-based reward payments for advisers.
The New Zealand package is different, however, because advisers don’t pay a dealership fee.
In addition, New Zealand risk advisers also claim there was nothing for them in the package, with a number of them describing the package as virtually worthless.
“It would be fair to say we are disappointed,” one senior adviser says.
It is understood that the AMP Advisers Association is going back to the company and will express its dissatisfaction with the offer.
A spokesman for AMP would not confirm the details of its New Zealand offer, but did say it was substantial and suggested advisers “shouldn’t be greedy”.
He also said the company was planning to roll out some unit trust products in the next couple of months, which the advisers could sell and therefore be eligible for the additional commission.
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
