AMP planners back fee for service APL
Tuesday, 9 February 2010 11:35am
AMP's financial planners have thrown their support behind an approved product list (APL) that does not include any commissions - and fund managers keen to keep their business are fast adjusting to the change.
Steve Helmich, director Financial Planning, Advice and Services at AMP, said the firm met with financial planners in May last year and asked whether or not it should wait for the Financial Planning Association (FPA) deadline or start as soon as possible.
"We asked them if they saw any reason not to transition now and the resounding answer was ‘no'," he said.
The FPA board approved a remuneration policy that moves its members away from a commission-based model by July 2012 in October last year. The policy does not include risk products, rebates and related payments that are product directed payments to Australian Financial Services Licensees.
Helmich also said the financial planning division continues to work closely with fund managers on their product disclosure statements (PDS) to ensure the network can deliver a fee-based service to clients.
"They've got some changes to do and if they're going to be a few weeks late, we'll work with them on that," he said.
"We've even said to them that we'll get the wording right in our statement of advice if you cant get your PDS inline with that from our date. Eventually they'll have to show it that way on the PDS."
AMP announced yesterday it had ceased to be a substantial holder in AXA AP. This comes after AMP announced its exclusivity agreement with AXA SA terminated on 6 February.
"As the agreement has terminated, AXA SA is no longer an associate of AMP and therefore AMP is no longer a substantial holder in AXA AP," said an AMP statement.
Michael Hobbs
