AMP backs ‘transition away’ from grandfathered commissions

6 November 2018

AMP Limited has offered its support to a transition away from grandfathered commissions in the face of what it describes “community sentiment” around the issue.

However, AMP has told the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that legislative measures to remove grandfathered commissions risk extinguishing the property rights of existing contracts and, accordingly, AMP would not support such a legislative measure.

“However, in light of community sentiment surrounding grandfathered commissions, AMP supports transition away from grandfathered commissions in a manner and timeframe agreed with the industry together with appropriate legislative reform,” AMP said in submission filed with the Royal Commission.

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It said that reform should include:

  • Government and regulatory facilitation for scoped advice; and
  • Government support for the removal of impediments to the transition for members, for example capital gains tax relief.

“Such legislative measures would aid in the transition to contemporary products without grandfathered commissions, if it is in members’ best interests to do so,” the AMP submission said.

It said that it supported increased and transparent disclosure and reminders of grandfathered commissions in members’ annual statements throughout the transition period.

A reasonable transition period is required to provide sufficient time for industry participants to implement required changes, including to business models, systems, disclosure documents, advice and communications to members, to minimise unintended consequences for customers, financial advisers and the community in general.

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Any views emanating from this particular company should be immediately consigned to the 'who cares' bin. The days when AMP could be considered an industry contributor have well and truly gone.

Of course they do, screw the advisers who service the clients on behalf of management who are all crooks.

Great comments about them all trumpeting about stop paying commission, how about show that you will just not retain at the product and within the mother ship and keep it.

The Liberal Govt need to be very ,very careful of this issue in relation to a potentially massive compensation bill that may need to be paid to advisers and AFSL's as a result of property acquisition.
Just terms would need to be accounted for in their decision and they would be slaughtered at the next election by advisers who would have had a portion of their business forcibly removed through legislative change without consideration paid.
If they think a protest vote over the seat of Wentworth was a kick in the guts, wait until they see how voter reaction
would play out if the Govt decide to wind back existing legislation.

Really? Who are we kidding her Agent 86? The adviser force at worst is less than 40,000. Add family members and sympathisers and at very best, I struggle to see whether you can get 100,000 people across the country to lodge a protest vote - I speculate the number may be less than 10,000. Argue on unjust terms but not on impact to the Libs.

Take whatever AMP say with a pinch of salt. Have proved time and time again that they are not to be trusted

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