AMP acknowledges super hit
AMP Limited has acknowledged a multi-million impact resulting from passage of the Government’s new superannuation legislation.
AMP has notified the Australian Securities Exchange (ASX) that it had completed an assessment of the legislation and the indicative operating earnings impact on AMP’s retained businesses this financial year was expected to be around $10 million after tax, with an annualised impact of $30 million after tax from 2020.
The company said these estimates were prior to a number of potential mitigants including offsetting actions to retain customers and revenue, administrative cost efficiencies and the consolidation of low balance superannuation accounts from other industry participants into AMP active accounts.
It said the earnings impact would predominantly be in the Australian wealth management business, which would be required under the legislation to transfer approximately 370,000 low balance superannuation accounts to the Australian Taxation Office (ATO).
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
