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.
Recommended for you
Proper recordkeeping has been described as the “mortar between the bricks” of the advice process and critical to an FSCP decision as an adviser is suspended for failures in this area.
There could be changes ahead for how ASIC requires licensees to handle conflicts of interest as the corporate regulator announces it will be meeting key stakeholders next year to update guidance.
As investors increasingly seek to embed ESG considerations in their portfolios, a specialist adviser has offered tips for financial planners who may feel overwhelmed in tackling these complex topics with clients.
Global investment consultancy bfinance is expanding into offering services for wealth managers as they seek advanced investment strategies for their clients.
