AMP Financial Planning appears to have paid a price for the enforceable undertaking it entered into with the Australian Securities and Investments Commission (ASIC) in July, with a reduction in net cashflows over the period.
The AMP Financial Services September quarter net cashflows report revealed that while cash inflows increased by 16 per cent over the period, net cashflows were $21 million lower than for the same period last year.
The company said that it was likely there was a short-term impact on cash inflows in the quarter as AMP Financial Planning focused on changing planner processes and procedures in line with the enforceable undertaking entered into with ASIC.
By comparison, AMP’s separately branded financial planning distribution channel, Hillross, recorded growth in cash inflows of 21 per cent, with net cashflows up $30 million to $131 million.
The Australian Prudential Regulation Authority’s (APRA) trustee licensing regime also impacted AMP Corporate Superannuation’s direct sales force, which were down $775 million when compared to a year earlier.
The company said the large net cashflows recorded in the second quarter of 2006 marked the closing of the APRA licensing window and there had subsequently been a return to more normal flows in the channel.
