AMP acknowledges centrality of adviser referrals
AMP Limited has emphasised to a Parliamentary Committee the degree to which it is reliant on financial advisers for directing business towards both AMP Bank and its superannuation business.
AMP has outlined the level of reliance while answering questions posed during hearings of the Parliamentary Joint Committee on Corporations and Financial Services inquiry into financial abuse.
In a preamble to answering specific questions, the company described AMP Bank and AMP superannuation funds as the businesses that interact daily with consumers.
In doing so, it described AMP Bank as “a small but competitive bank offering mortgages and transaction accounts”.
“From the outset it has been a digital bank with no physical branches,” it said.
“The overwhelming majority of our customers come to AMP Bank via a mortgage broker or an adviser. Our mortgage book accounts for approximately 1% of the market and is geographically centred around Sydney and Melbourne.”
Where the AMP superannuation businesses are concerned, the company pointed to the centrality of financial advisers.
“AMP’s superannuation business manages approximately $100 billion in funds across MySuper and Choice products for approximately 1 million members,” it said.
“For those members in the Choice sector, similar to AMP Bank, they are primarily originated via a network of aligned financial advisers.”
“Though customer origination is largely intermediated, AMP maintains robust customer service through our call centres and, when need is identified, prioritises access to extra assistance from our most skilled operators.”
Just wind them up please so the rest of the financial planning industry can move forward without an albatross around our necks.
Nah, the AMP vertically intergrated model is effectively dead. It’s a broad APL.
It wouldn’t come as any surprise that retention and flow comes from the adviser network to AMP offerings, but the advisers are choosing to do that – not AMP.
AMP offerings in the market as client solutions are competitive.
Was Previously with Charter and still in contact with former colleagues still there, your assessment is correct.
Seems like many advisors need a scapegoat for all the woes of the financial planning industry. AMP had no choice, given the albatross around it’s neck, to clean up it’s act given the high degree of media, political and regulator scrutiny. They have done that whereas I’d suggest many others have not.
AMP don’t have any control over where the linked adviser channel places their business.
The Joint parliamentary committee seems to be stacked with Industry Fund & Union based sympathisers. If you are looking for corruption the parliamentary committee seems to be at its heart. These committees brought down the banks. They helped bring down the insurance industry, and now they are focused on the last bastion of their competition.
There is so much corruption amongst the Labour Party, along with their union, and Industry Fund financial supporters. The corruption runs deep in this Albanese Government. I think if you simply join the dots, and follow the bread crumbs it’s easy to see the corrupt financial links this government has.
Labour Party has Industry Funds and Unions filling their pockets. The return favour is that our Parliamentary Committees and treasury keeps the pressure on the banks, and independent retail investment firms so their mates gain the upper hand and advantages.
The Industry Funds and Unions then control the large infrastructure projects at the coal face with their links to organised crime. As you can see there are only 2 degrees of separation between organised criminals, bikies, Australians retirement funds and the Albanese government.
What a debacle!!!!