AMP remains committed to helping ensure a fair, transparent, and consumer focused superannuation system, and supports the intent of the Annual Performance Test.
However, the test as it applies to investment products on superannuation wrap platforms is fundamentally flawed and urgently requires reform.
The test covers just 3% of the platform market, causing distorted and misleading results, and potential consumer harm.
The test risks pushing superannuation members out of investment products which are meeting investment objectives and into more expensive, untested and/or potentially riskier products.
For example, members may lose access to capital guarantee solutions specifically chosen to provide protection against market volatility.
Three AMP capital guaranteed products were called out by the test, yet these products are intentionally structured to prioritise stability and downside protection. Penalising them under a benchmark that ignores their purpose not only misrepresents their value but risks forcing members out of products that they selected to match their risk appetite and retirement goals.
In its current form, the test also imposes an unnecessary layer of red tape and regulation for advisers, which only leads to detrimental outcomes for their clients and undermines the value of professional advice.
We welcome the Treasurer’s recent openness to reviewing the test, and we are actively working with Treasury to make it more fit for purpose, including recommending a more representative benchmark that encompasses all platform products.
AMP will continue to advocate for reforms that benefit consumers and strengthen confidence in the superannuation system.