The latest fee cuts include a shrinking down of the investment fee on AMP’s generic MySuper life cycle options from 0.32 per cent to 0.3 per cent on a range of products from Friday.
The company will also remove investment fees on cash options for AMP’s SignatureSuper, SignatureSuper Select, SignatureSuper Allocated Pension and all term deposits entered into after 31 January.
Further, the Stronger Super Fee will also be removed from 28 February, which will decrease the administration fee for AMP choice investment options on a number of products by 0.13 per cent.
After being criticised for measures across its superannuation offering during the royal commission, such as the fees-for-no-service scandal, AMP committed to a simplification program for the segment, which will see changes take place across its funds, trustees, products and wrap platforms.
An original plan presented to shareholders in August showed AMP intended to condense its six super funds to one, its two trustees will to one and there will be two product administration systems down from its previous nine.
The most drastic changes could be seen with the range of retail superannuation products falling to five from a previous 72, and around 170 investment options being rationalised to around 50.
But the group later provided an updated answer to the House of Representatives standing committee on economics, saying the simplification process would see AMP move to two funds from seven, Super Directions Fund and the Wealth Fund, and its one super trustee would be its subsidiary NM Super.
NM Super is set to play “a more active role” under the new model, investing directly in super assets instead of going through life-backed investment policies issued by AMP Life.
Currently, the group’s super funds invest in life-backed insurance policies issued by the life insurance business, and they also outsource administration, product development and product development functions to AMP Life.
AMP reported the trustee will also be directly engaging its investment manager and custodian, as well as using a new related party service provider, AWM Services, for administration and product development.
The group anticipates the reshaping of its wealth business will be completed in the second quarter.
Lara Bourguignon, managing director for superannuation, retirement & platforms commented outcomes for clients are central to AMP’s strategy moving forward.
“The fee cuts form part of AMP’s major program to simplify our superannuation and wrap platform businesses, which will see a significant reduction of super products and enable us to provide more benefits to clients,” Ms Bourguignon said.
AMP has promised a simpler governance structure, a stronger trustee operating model, and lower costs.
The cuts have followed separate fee deductions for AMP’s MySuper products and MyNorth wrap platform clients in 2018 and 2019.
AMP has helped me for 30 years and will continue to do so for many years to come
Trading at $1.75 this morning Gaz…on the way to oblivion. Results out next week.
If AMP was charging Fees for No Service why does it need to reduce services to cut fees???
It’s always a coin toss between Centrelink, the ATO and AMP as to whom is the worse organization in Australia. Perhaps some cost savings achieved here by the subsidization of it’s adviser network being less.
Its no competition. The ATO at least looks after its employees, Centrelink distributes money to those in need, whilst AMP hates its customers and staff even more and will do anything to make a short term profit for the major share holders. Im sure that if AMP could hire slave labour then they would and if it was cheaper to replace those slaves than feed them then thats what they would do. Im pretty sure they are the most evil company ever.