With a new round of Royal Commission hearings into superannuation underway, here’s an update on actions we’re taking to reset for the future.
These actions include:
- identifying and compensating eligible financial advice customers more quickly
- improving our processes and compliance systems, and
- reducing fees for more than 700,000 super customers.
Financial advice – putting things right faster
In our open message to customers in May, we promised to move faster to identify and compensate anyone who received inappropriate financial advice or paid for services they did not receive.
We’ve since announced a large commitment of money and resources to do that.
It will take time to do this fairly and thoroughly – we estimate up to three years. That’s because we’re assessing advice and fees over a 10-year period across our entire network, the largest in Australia.
We’ll be in touch with any customer who may be affected – there’s no need to do anything.
If you have a financial adviser and you wish to talk about any advice you’ve received, you should contact them. And of course, you can contact us any time too.
Investment in better systems
We’re working hard (backed by an investment of $70m) to improve processes, compliance and the way we run our business, so these issues can’t happen again.
Fee reductions for more than 700,000 super customers
We’ve announced fee reductions for our range of AMP MySuper products that will benefit around 700,000 superannuation customers, and will be communicating with these customers directly in the coming weeks.
We've also reduced the administration fee on a number of cash investment options in Super Directions Fund (SDF) and some mature products. This will improve investment returns and address the issue of negative returns resulting from historically-low cash returns combined with the usual fees that apply to a super account. We're compensating impacted customers in these products for lost earnings as quickly as possible, and will be communicating with these customers directly. No other customers were impacted by this issue.
Earning your confidence
We don’t always get it right, but we do promise to set things right.
AMP remains financially strong and a leader in superannuation, investments, retirement and advice. More than 3 million customers trust us to help them achieve their goals. And we’re working as hard as we can to preserve and deserve that trust.
We have more to do but want to say thank you for being our customer.
If you have any questions, you’ll find our contact details here.