AMP shamed by CHOICE

CHOICE has awarded AMP a Shonky for its "grossly underperforming" superannuation division, highlighting the AMP Retirement Trust and Super Savings Trust products.

The consumer advocacy group said 55.5% of AMP's superannuation customer base comes from inactive accounts which are slowly losing value as fees eat into the principle.

According to CHOICE there are over a million idle accounts within the AMP super products.

Cameron Sinclair, a senior policy adviser at the CHOICE-affiliated Super Consumers Australia said AMP has no one to blame but itself.

"The financial services giant has a business model that is rotting from the inside out," he says.

"It has historically been much better at growing its books and signing up customers than it has been at delivering strong returns."

AMP responded to the criticism saying it supports legislative measures that identify and aim to reduce duplicate or inactive accounts.

"A large proportion of the AMP accounts classified in APRA's data as inactive receive a capital guarantee. It is often in members' best interests to maintain these accounts given the future benefit they will provide."

"AMP is also undertaking a major project to simplify our superannuation business and offers, which is being overseen by the trustee board in accordance with legal and regulatory obligations, and in consideration of members' best interests," AMP said.

The consumer group made mention of the "underhanded behavior" that came to light at the Royal Commission, in which AMP was shown to have charged customers substantial financial advice fees without delivering a service.

CHOICE also lambasted AMP for having "the lowest customer satisfaction ratings on record" in 2018.

AMP has faced increased scrutiny since the revelations from the Royal Commission which has seen a major restructure of the business.

The financial institution is currently facing a number of class actions, with a number of law firms competing to bring a case against it.

Read more: AMP Retirement TrustRoyal CommissionSuper Savings TrustCameron SinclairSuper Consumers Australia
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