'New era' for financial services, says AMP

AMP reiterated plans to scrap commissions by 1 July in favour of a fee-for-service model at its annual general meeting yesterday.

AMP chief executive officer Craig Dunn informed shareholders that the Australian financial planning sector was about to “embark on a new era”, with AMP being the first major wealth manager to make the switch.

From 1 July, the company plans to scrap in-built commissions on new superannuation, pension and investment business and move to fee-for-service advice across all product and advice businesses.

“We’re making this change a full two years ahead of the Government’s deadline,” Dunn said.

“We’re also aware that not everyone wants to have a relationship with a financial planner, so we are becoming more accessible in other ways. Our products and services are increasingly available online, over the phone and through third parties,” he added.

Mention of AMP’s takeover bid for AXA was brief, with Dunn stating that the company was pleased with the Australian Competition and Consumer Commission’s decision.

“AXA remains strategically attractive to us, and merging with AXA would certainly accelerate our growth strategy further,” he said.

According to Dunn, AMP’s immediate focus is to work through the relevant regulatory matters involved in the transaction.