Recent media coverage about AMP - July 2018

Newsletters

Firstly, we have also been very disappointed by AMP management and the adviser network and if you would like to discuss the Royal Commission, the implications for AMP and the way we provide advice at Active Financial Services, please do not hesitate to call us on 08 9474 2255.

I invite you to read the article below.  Even after reading the article, I very much understand if you feel the highlighted culture at AMP is unacceptable and have the desire to look at other options. We appreciate this and invite you to make contact to discuss alternate solutions. We are also happy to look at this during your next Planning Meeting.

Our philosophy

As per my email in April/May 2018, I believe the ‘fees for no service’ issue, as well as ‘claytons choice’ when providing solutions to clients is not just an AMP issue - hence I have never worked for a major institution since starting in the industry in 1999 and the issues being raised was one of the reasons for establishing Active Financial Services.

I would firstly like to highlight that Active Financial Services use many investment strategies and products for clients to build and protect wealth. We are not a “puppet” for any institution. Our philosophy has always been to find the best solution for clients and hence not all our clients use AMP products. For example, we currently use 8 quality life insurance providers however we continually research better alternatives for clients – we are currently meeting with a new insurance provider this Friday as we believe it could be a good option for clients.

AMP North platform

In 2009 North was owned and run by AXA Australia. At the time we researched and elected to use North for no other reason than its functionality, cost effective fee structure and numerous underlying investment options (currently over 300). We believe it continues to be an effective investment solution for some of our clients. In fact the North pension platform was a 2018 finalist for Chant West last month and I have some of my own family using this (as it fits their needs).

To be very clear, North does not pay commissions and we started to use North for some of our clients back in 2009 after completing our research. Until AMP bought AXA in 2012 (and therefore the North platform) our involvement with AMP had been limited.

Impact for you

When it comes to the North platform, it is important to understand it is a trust structure where AMP is effectively the trustee. In many cases, AMP may only be the administrator of the portfolio and the underlying investments (managed funds and direct shares) have no real investment relationship with AMP. This is why you will never see AMP North or similar platform we use for clients, on the “Top 10 Super Fund Performance” list - as North is a platform not an investment and the performance is directly related to the 300 underlying investments you can select.

We don’t expect the outcome of the royal commission to have any major impact on you or your portfolio as the majority of issues raised are historical advice issues going back to 2016 and are NOT related to AMP wealth management and the North platform.

Saying this, I understand that some of you may feel the culture at AMP is unacceptable and desire to look at other options. We very much appreciate this and invite you to make contact to discuss alternate solutions. We are also happy to look at this during our next Planning Meeting with you.

As stated in the past, at Active Financial Services we will continue to review our processes and keep the needs of our clients upfront and foremost. We pride ourselves on being a ‘client centric’ boutique firm offering tailored advice to suit individual needs. Any product or strategy we use for a client may aid in achieving an objective but is never the sole solution.

Regards

Andrew Wieman

Director

Active Financial Services
Category: Newsletters
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