A statement to the market 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 chief executive 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.”