AMP drops industry super funds
AMP Financial Planning (AMPFP) has claimed a lack of demand is the reason for removing industry superannuation funds from its approved list, but Industry Funds Services has implied the lack of commissions may have driven the decision.
Eighteen months ago, AMPFP added 10 of the union-backed, not-for-profit funds to its approved products and services list.
Yesterday its managing director, Michael Guggenheimer, announced low client demand meant it was no longer economically viable for the group to have the funds on the list.
However, despite being “quite disappointed” with the decision, Industry Funds Servicesexecutive chair Garry Weaven said he was not surprised.
“When AMP first announced it was including certain industry funds on its approved list, we foreshadowed that no business would be directed,” he said.
“We saw the announcement as simply an attempt to deflect criticism.
“AMP’s network of financial planners sells products to their clients and receives sales commissions from those products.
“Industry super funds do not pay commissions, so why would AMP’s financial planners ever recommend an industry fund?
“I hope AMP’s financial planners do not claim to be assessing all the options that might deliver the best retirement savings for their clients — they can’t be.
“By ignoring industry super funds they are ignoring the fastest growing sector in the superannuation industry, according to the most recent Australian Prudential Regulation Authority statistics.”
AMP planners can still provide personal advice on industry funds if a customer requests it, but must first seek approval from AMPFP.
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