The quality of the advice recommendations, aspects of the advice process used by AMP Horizons when obtaining client information, and how clients’ reasons for seeking advice were identified, were recognised by ASIC as areas not meeting the standard expected of an Australian financial services licensee.
In response to ASIC’s concerns, AMP Horizons has made changes to the oversight of its advisers and enhanced its quality assurance process at the point before clients are provided with advice, ASIC stated.
ASIC also acknowledged “the constructive and prompt action taken by AMP to address its concerns”, adding AMP had cooperated fully with ASIC’s inquiries.
At its own initiative, AMP also completed an external review of its advice processes, including a program of advice policy reviews, revisions to advice template documentation, a restructure of the planner supervision arrangements, and a training program for planners and those responsible for planner supervision, ASIC stated.
ASIC commissioner Peter Kell commended AMP for its positive response to the concerns raised. ASIC said it will continue to monitor AMP’s implementation of the new measures.
