A statement on 6 May confirmed AMP would be implementing new pricing in order to deliver a “market-leading offer” for clients and their advisers.
Among the new pricing highlighted is a 22 per cent administration fee reduction on the company’s flagship MyNorth wrap offer for portfolio balances of $250,000 and over.
AMP also declared it would reduce the administration fee cap for individual clients and families by $400 and $500 per year, respectively.
As per the group’s statement, other features of MyNorth’s new pricing include: “clients only pay for what they invest in from MyNorth’s Core, Select and Choice menus; clients can access lower administration fee rates as their total portfolio balance grows; and, families can benefit from family fee aggregation and caps”, with a family group permitted to have up to six members with up to six accounts each.
The move, enacted by CEO Scott Hartley, who took over the reins late last year, comes as the wealth giant looks to “counter the practice of some industry providers” and ensure “better price transparency for financial advisors and investors”.
“The fee reductions we have announced across our platforms should be seen by clients and financial advisers as a signal of AMP’s intent to compete strongly and transparently across our wealth product range,” Mr Hartley explained.
“These are highly competitive and transparent fees, which we have introduced as a response to the use of advice licensee or advice practice rate cards by many in the industry, which we see as distorting the system and creating member equity issues in the super and pension wrap products.
“We are not going to play that opaque game as it creates inequity for financial advisers and their clients and is arguably breaching legal obligations to treat members fairly.”
Going forward, Mr Hartley said AMP would continue advocating a more transparent approach to pricing across the industry. The latter half of this year will see the company review its iAccess and Generations platforms.
“All financial advisers should have access to the same platform pricing from their chosen provider and not have to compete with selected advisers getting preferential deals,” Mr Hartley said.
“AMP is committed to providing market leading wrap offers for all financial advisers so they can efficiently and equitably deliver for all of their clients.
“Financial advisers and clients can expect AMP to take advantage of its substantial wealth management capabilities and continue to invest in our platform business creating whole of wealth solutions and more seamless administrative and technology experience.”
Want more content on technology and innovation? Register here for the Adviser Innovation Summit 2021.
Now it’s only twice as expensive as many other products
The three year turn around strategy has seen the share price at near historical lows, advisers leave (or get booted) in droves, clients leaving and AUM flying out the door. Is there light at the end of the tunnel or is that a freight train?
Toot toot….
Afterglow of radioactivity?
Nothing to do with Strategy – Everything to do with Francesco’s poor decisions relating to the Boe Pahari scandal and not being able to secure a $6 Billion takeover deal from Ares. The government’s reform is changing the landscape for Advisers and the industry, it’s not the company.
Might have a bit to do with the culture too. AMP is widely despised by clients, advisers, regulators and in many cases their own staff too. Many people in senior management who created this mess are still there, and while they remain there is no chance anything can be turned around. Not much point making the platform cheaper when no one wants anything to do with something associated with AMP in the first place.