AMP recommends industry funds
Australia’s largest financial planning dealer group, AMP Financial Planning, has acknowledged the ongoing popularity of industry superannuation funds by adding ten of the union-backed not-for-profit funds to its approved list.
However, AMP planners will only be able to advise existing industry fund members to retain their account, or to contribute and roll in additional funds. They will not be able to advise a client to join an industry fund.
Industry super funds are renowned for their low fee structures, but financial planners have mostly been reluctant to recommend them because they do not pay commissions.
The funds to be included were chosen based on their geographical coverage and those that were most common among existing client holdings.
The funds included are Asset, Australian Retirement Fund (ARF), CareSuper, C+BUS, Hesta, Host Plus, REST, Statewide Super, SunSuper, Superannuation Trust of Australia (STA) and VicSuper.
AMP Financial Planning managing director Greg Kirk said the initiative will allow planners more flexibility in their aim to provide quality advice across more of their clients’ holdings.
Kirk said AMP would not rule out adding additional industry funds to the list in the future.
“In future, we hope to develop solutions for employers that might include recommending an appropriate industry fund for their workplace,” Kirk said.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
