Too many self-interested parties have sought to dumb down the definition of financial advice to just product selection, according to AMP Limited chief executive, Craig Meller.
Delivering a speech in which he emphasised the value of vertical integration, the AMP CEO said he believed that, in reality, product selection represented the least important component of high quality financial advice.
"Too many usually self-interested parties like to dumb down the definition of financial advice to just product selection," he said. "This is usually a ruse to justify a particular entrenched position — and is a million miles from where the true value of advice lies."
Extolling the virtues of vertical integration, Meller said AMP was committed to the model because it had allowed the company to:
Invest more in financial advice than any other business,
Bring in more advisers to the industry than any other business,
Train our advisers to higher standards,
Then stand behind the advice the company provides.
"We believe there's no greater level of consumer protection than that," he said.
"At AMP we support higher industry standards — and have indeed led the way on this, we support higher entry-level qualifications, and an ASIC-managed register of financial advisers," Meller said. "But like any profession, we need to prove we can regulate ourselves effectively. And I believe we can."
