AMP has sought to put a stake in the ground on platform pricing, reducing fees on its MyNorth platform while accusing other platform providers of a lack of transparency.
It said it was introducing its new, lower fees to “counter the practice of some industry providers, who are offering advice licensee or advice practice rate cards to encourage financial advisers to use their platform”.
“The use of these rate cards is distorting pricing and equity in super and pension wrap products, as not all financial advisers using the same platform can access the same prices for their clients,” the company said.
“AMP is calling for an end to the use of advice licensee and advice practice rate cards, so that there is better price transparency for financial advisers and investors, and greater equity.”
The company said that as part of its commitment to delivering a market leading offer for clients and their financial advisers, it had introduced administration fee reductions of up to 22% to its flagship MyNorth wrap offer, which came into effect on 1 May, 2021.
AMP’s North and Summit administration fees will also be reduced effective 1 June and 1 August, 2021, respectively, and will broadly align with the new MyNorth fees.
It said its iAccess and Generations platforms would also be reviewed in the second half of the year. Clients and financial advisers would be provided details of the changes once they are confirmed.
Commenting on the move, AMP Australia chief executive, Scott Hartley said the fee reductions should be seen by clients and financial advisers as a signal of AMP’s intent to compete strongly and transparently across our wealth product range.
“These are highly competitive and transparent fees, which we have introduced as a response to the use of advice licensee or advice practice rate cards by many in the industry, which we see as distorting the system and creating member equity issues in the super and pension wrap products,” Hartley said.
“We are not going to play that opaque game as it creates inequity for financial advisers and their clients and is arguably breaching legal obligations to treat members fairly.
“We are advocating for a more transparent approach to pricing across the industry. All financial advisers should have access to the same platform pricing from their chosen provider and not have to compete with selected advisers getting preferential deals.”