AMP Financial Planning caught on super switching
AMP Financial Planning has given the Australian Securities and Investments Commission (ASIC) an enforceable undertaking relating to the provision of superannuation switching advice after being caught up in a review conducted by the regulator.
According to AMP, between October last year and April this year ASIC conducted a review of around 300 client files, and discovered that some AMP Financial Planning planners had not disclosed a reasonable basis for advice when recommending a change in superannuation funds.
It said ASIC had also found that changes were required to AMP Financial Planning’s Financial Services Guide and website to make clearer the range of products and services provided to customers.
AMP acknowledged that ASIC had also expressed concern that AMP Financial Planning might not have adequate arrangements in place for the management of conflicts of interest.
Commenting on the enforceable undertaking, AMP chief executive Andrew Mohl said the company accepted there had been inadequacies in its processes and procedures.
“In the majority of cases, we believe the financial outcome recommended to our customers was appropriate and reasonable,” he said. “However, in some cases the reasons for recommending changes to superannuation arrangements were not as well documented as they needed to be.”
He said AMP was disappointed the company had not met the high standards it set for itself.
AUTHOR
Mike Taylor
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
