AMP chief executive Craig Meller has publicly played down the role of product selection in financial advice and defended AMP’s business model as one that invests in advice.
In a speech to the Committee for Economic Development of Australia (CEDA) think tank, Mr Meller touched on the “hot topic” of quality financial advice, outlining AMP’s view about the true worth of advice.
“Very few people I speak to understand the true nature of financial advice and where its real value lies,” Mr Meller said.
“Too many usually self-interested parties like to dumb down the definition of financial advice to just product selection. This is usually a ruse to justify a particular entrenched position – and is a million miles from where the true value of advice lies.”
Mr Meller laid out an advice provision philosophy that is outcome-based and focused on achieving a “suitable post-retirement income”, with asset allocation and product selection making up just 10 per cent of the advice process.
“Indeed, in an increasingly commoditised product world, product selection is the least important component of high quality financial advice,” he said.
“And that is why AMP is so committed to a vertically-integrated model.”
AMP’s vertically-integrated model allows it to “invest more in financial advice than any other business”; “bring in more advisers to the industry than any other business”; and to “train [its] advisers to higher standards”, Mr Meller said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 21 Aug 2017Advisers key to ‘living the dream’: FPABy Staff Reporter
- 21 Aug 2017US IFA history repeats itself in AustraliaBy Killian Plastow
- 21 Aug 2017Licensees need greater scrutiny, PJC hearsBy Larissa Waterson
- 18 Aug 2017ASIC permanently bans former AMP adviserBy Staff Reporter
- 18 Aug 2017IRESS announces first half resultsBy Jessica Yun
- 18 Aug 2017Banks the key to closing advice gap, Tria saysBy Larissa Waterson
- view all