AMP recommends industry funds
Australia’s largest financial planning dealer group, AMP Financial Planning, has acknowledged the ongoing popularity of industry superannuation funds by adding ten of the union-backed not-for-profit funds to its approved list.
However, AMP planners will only be able to advise existing industry fund members to retain their account, or to contribute and roll in additional funds. They will not be able to advise a client to join an industry fund.
Industry super funds are renowned for their low fee structures, but financial planners have mostly been reluctant to recommend them because they do not pay commissions.
The funds to be included were chosen based on their geographical coverage and those that were most common among existing client holdings.
The funds included are Asset, Australian Retirement Fund (ARF), CareSuper, C+BUS, Hesta, Host Plus, REST, Statewide Super, SunSuper, Superannuation Trust of Australia (STA) and VicSuper.
AMP Financial Planning managing director Greg Kirk said the initiative will allow planners more flexibility in their aim to provide quality advice across more of their clients’ holdings.
Kirk said AMP would not rule out adding additional industry funds to the list in the future.
“In future, we hope to develop solutions for employers that might include recommending an appropriate industry fund for their workplace,” Kirk said.
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