Under the arrangements, all existing and new advisers must hold a Certified Financial Planner (CFP), a Fellow Chartered Financial Practitioner (FChFP) or a Master of Financial Planning (MoFP) accreditation.
New advisers will be required to complete the qualification within five years of joining an AMP licensee, while existing advisers will have until 31 December 2019 to follow suit.
It follows CBA’s recent announcement that it will implement minimum education and training requirements for authorised representatives as part of its public response to parliamentary scrutiny of its advice businesses.
“This is a critical time for the industry and the measures we’ve announced today go to the heart of what we do – offering financial advice to help people live better lives,” AMP group executive, advice and banking, Rob Caprioli said.
“This commitment builds on our record of significant investment in the standards of professionalism for our financial advisers.”
In a statement, AMP noted that the required qualifications are post-graduate degree equivalent, “making AMP’s minimum requirements the industry’s highest”
As part of its new measures, AMP will also be establishing a Customer Advice Review panel by the end of the year to investigate any customer complaints about the quality of AMP’s personal advice.
In the case of inappropriate advice, the panel will be able to restore the customer to the position they would have been in had appropriate advice been given.
It will be chaired by an independent representative, comprise a CFP, FChFP or MoFP advice professional and AMP’s chief customer officer Paul Sainsbury.
The group noted in addition that when the proposed ASIC industry-wide adviser registry becomes avaliable, AMP will be making it available on its website.
“AMP stands behind the advice its advisers give to customers,” Mr Caprioli said. “That’s the benefit of seeking advice from an adviser backed by a large and trusted brand like AMP. We can make things right for those customers who don’t receive advice that’s in their best interests.
“The announcement today takes this commitment a step further.”
AMP will be rolling out a broad-ranging ethics and responsible decision-making program for advisers to support the measures, which will be in place by mid-2015.
The group said it is working with its licensees to ensure all AMP financial advisers have support to meet the new requirements.
Country bob, you seem to place a lot if emphasis on product for someone who “places product last”. I have no doubt you mean what you say, the point is those temptations are in place as you just admitted and that is what is rotten about our industry, whether you have an insto-funded MBA or not will not prepare you for that ethical decision.
City Bob, as I have pointed out before in this forum, it is up to the planner. Rhys Wood obviously didn’t explore all the opportunities available. As an AMP Planner you are not forced to write AMP product – you choose to. There is a robust one-off approval process that provides for those planners, like me, who place product last. If you ignore the ‘pop charts’ and buyer of last resort temptations then you can still provide advice in the best interest of the client and just get paid a dollar based fee, like an accountant or a dentist or a lawyer. We all have to have a licence. Mine is with AMPFP. They give great support and impose a heavy compliance regime – I like that. It doesn’t mean I can’t provide advice that is in the best interest of the client. I do still use some AMP product when it stacks up. They have a lot of products. Some are good, some not so good – same as every other provider. I would be very surprised if no-one other than AMP planners use AMP product.
Country bob, you must have missed this whole episode:
http://www.ifa.com.au/news/130…
There seems to be a huge misconception that AMP Planners have to write AMP product. I am an AMP Planner. If someone has Hostplus or Australian Super or Catholic Super and it is appropriate then we just recommend they keep it. I just charge a dollar based fee for the advice. The product is secondary. I don’t get paid any more or less because of the product. Why is that different to an ‘Independent’ planner? As far as the education piece goes, the more the better I reckon. Yes it is only one piece of the puzzle but it definitely can’t do any harm in moving towards the ultimate goal of having the work we do being regarded as professional.
When a CA or CPA obtain their qualifications and they leave their employer, they are still able to practice their craft without needing a “Licensee”. When a CFP, FChFP or MoFP leave their employer or “Licensee” their qualifications is useless. No smart young graduate in their right mind would obtain these qualifications to find that they can only use these qualifications if they are employed or authorised through a Licensee. Without any form of licensee CFP, FChFP or MoFP cannot earn any income, yet CA and CPA can.
I fail to understand how any rationale person can suggest that raising educational standards is anything but good for the industry. Unless of course you are fearful of having to go back to study to make the new standard.
If AMP were so big on education for their advisers they would have mandated it 15-20 years ago. But they know degrees aren’t needed to flog product.
All the storm planners were educated. All the cba planners were educated. Bzzzzzzzzzzzt………fail. Next new brainstorm idea bowing to popular beliefs & butt kissing. Get real AMP. Who can forget your self promotion of the immediate annuity rates back in the late 80’s & early 90’s. You remember surely? When you dipped into reserves propping up the earnings rate to “buy” new business, to only then see it all collapse & your poor policy holders left wearing it for years & years. Yeah good ideas AMP.
So very TRUE Warren!
It really is honesty, trust and integrity that is often missing, your approach is worthy of recognition.
Your quote
My fear has always been that if I did, I’d never receive another referral and my brand damaged as a result.
This is just so true, your brand is a lifeline.
How ridiculous for AMP to NOW suggest:
Quote We can make things right is not perceptible in genuineness.
Remember Failing to plan, really is planning to fail
Their claim here is unproven.
AMP stands behind the advice its advisers give to customers, Mr Caprioli said. Thats the benefit of seeking advice from an adviser backed by a large and trusted brand like AMP. We can make things right for those customers who dont receive advice thats in their best interests.
A fabrication of the truth!
Well done AMP. Education doesn’t maketh the man, but this move certainly can’t hurt. There are plenty of educated bad planners, but there are even more uneducated bad planners.
Degrees, Diploma’s blah blah blah! It’s often the most educated people who are the MOST dishonest so what difference does another qualification make? Knowledge is key YES but so is the ability to recommend the best of what’s out there, not just what AMP, MLC or CommInsure want to promote that’s theirs. Call me nave, even gullible but Im at a loss to understand why theres so much focus on dishonesty in this industry! Ive never considered doing anything wrong by a client despite being disappointed with some that I’ve gone out of my way to help but who through it back in my face. My fear has always been that if I did, I’d never receive another referral and my brand damaged as a result. Were becoming a country that focuses on the spec on the windscreen rather the bigger picture. Just how does a large and trusted brand like AMP justify increasing its Level Premiums, taken out 20 years ago, by 20 to 38%? You can keep your degrees and diplomas. How about a course in integrity’?
Outstanding move. Certainly wont eliminate bad advice providers however the disadvantages associated with throwing away a 4 or 5 year qualification away are seemingly much greater then throwing a 6 week RG146 qualification. Much improved and much aligned to what mirrors a professional industry. Anyone who is adverse is protecting unprotectable ground and must change or leave this industry.
Post grad equivalent? What a load of nonsense. Regardless, lots of very educated people out there who are lousy at their chosen profession. When it comes to advisers, no substitute for ethics, empathy and life experience. Clients will always be drawn to the person, not the logo.
When you work in Hotel California what choice do you have.:)
Seriously though qualification standards are only one part, some of the best qualified are also some of the worst communicators with little interpersonal skills. Quality advice is about clients actually understanding and our ability to empower them to make good financial decisions. We need to spend a lot more time understanding client behaviour than we currently do. That may change some of the degrees we see as relevant for our industry.
It’s all smoke and mirrors. Additional education does not equal ethics or a removal of conflict of interests. If AMP was truly serious about fixing the perception around professionalism they would open up their approved product list, not force advisers to do more study that the majority don’t need to do.
I agree Benny!!!! There are so many loose Planners out there… Rogue if you will!!!
great to see the professional will be on par with accountants & solicitors with education levels
Big call from AMP. Congrats. Time for ASIC and the politicians to get behind this and make it mandatory across the board.
So they’ll have really educated shysters? Sounds dangerous.