Has AMP super finally overcome Royal Commission fall-out?

Mike Taylor

Managing Editor and Publisher

22 July 2025

ANALYSIS

There is deep significance for AMP Limited in being able to state that, for the first time since 2017, it has experienced positive net inflows into its superannuation funds.

Why? Because from being an acknowledged default destination for corporate superannuation funds, AMP took a significant hit almost from the very beginning of the Royal Commission into Misconduct in the Banking and Financial Services sector.

There was a period when consultants privately acknowledge that the reputational damage suffered by AMP was such that, when looking at options for successor fund transfers, the company was simply not being put on many shortlists.

Where AMP suffered, a number of industry superannuation funds benefited, not least Australian Retirement Trust (ART) which was perceived as being safe, well-resourced and moderate.

The reputational burden carried by AMP in terms of superannuation was not helped by the ongoing negative publicity which has flowed from the Royal Commission and subsequent events, not least the fact that in late 2022, the Australian Securities and Investments Commission (ASIC) announced that the Federal Court had ordered five AMP companies to pay a total of $14.5 million in penalties “for charging fees for services that were not provided to 1,452 superannuation members”.

“These members had been paying fees in return for access to general financial advice as part of an agreement between their employer and AMP. On leaving their employer, the members continued to be automatically charged the advice fee, despite no longer having access to the advice services for which they were being charged,” ASIC said at the time.

Thus, AMP Limited had good cause to celebrate within its announcement of second quarter cashflows that its superannuation business had finally turned things around with positive net flows of $33 million representing a significant reversal of the net cash outflows of $99 million experienced in the prior corresponding period.

This also needs to be seen in the context of former AMP chief executive, Craig Meller noting during the company’s 2016 briefing that net cash flows from the firm’s contemporary corporate superannuation businesses were up 81% on full year 2014 to $1.3 billion.

“…and this includes flow from mandate wins over $500 million,” he said at the time.

In yesterday’s ASX update, AMP said the $33 million in positive inflows reflected the impact of ongoing initiatives, including the launch of digital of digital advice and the recent rollout of AMP Lifetime Super to around 140,000 Choice members.