Retirement
AMP slammed again for super management
AMP has hit back after yesterday’s revelation that it was placing refunds for fees-for-no-service into new superannuation accounts for affected consumers, instead of asking them where the money should go.
AMP slammed again for super management
AMP has hit back after yesterday’s revelation that it was placing refunds for fees-for-no-service into new superannuation accounts for affected consumers, instead of asking them where the money should go.
Yesterday, the ABC revealed that AMP had written to former clients from late 2019 to inform them it owed them money for fees taken while providing no service.
Instead of asking customers where the money should be sent, the bank instead placed the refunded fees into new AMP superannuation funds.
While the fund does not charge fees on entrance or exit, the fund does have administration and investment fees, it was noted.
The new claims come after AMP was forced to refund hundreds of millions of dollars it had taken from clients in the “fees-for-no-service” scandal uncovered during the banking royal commission.
It’s been a troubled five years for the wealth giant, which recently brought together its banking and wealth management units in an attempt to reflect its new “client-led” strategy.
The financial institution was first put on notice for its “dud” superannuation practices during the royal commission – with one investor making just $3.23 on his super investment in 2016.
It also received an unenvious shonky award in 2019 for “ruined retirements” and has been under fire recently for its slowing down of insurance payments to affected superannuation trustees.
In response to the latest drama, AMP wrote that it is “committed to ensuring all members are treated equitably and fairly”.
It noted that following a review of Plan Service Fees, AMP had determined that superannuation fund members who had joined an AMP corporate super plan prior to 1 July 2014 were charged a fee for services that were provided by advisers – but these services were made available free of charge for members who joined corporate plans after that date.
AMP said it had made remediation payments to customers who were charged plan service fees.
This is separate to AMP’s fees-for-no-service remediation program, it was highlighted.
“Remediating customers as quickly as possible is our priority – for members without a current AMP super account, payments were made through an eligible rollover fund.”
It claimed this was “the fastest way to return money to clients and meets the legislative requirement for the money to remain within superannuation”.
According to the wealth giant, AMP’s eligible rollover funds are “capital guaranteed” – and will maintain the starting amount deposited in the fund.
“At all times, our approach is guided by the principle of putting clients first,” the statement read.
The payment of fees by Australian consumers for services that clients are not aware of and that are not carried out is an issue still plaguing the financial services industry – with journalist James Mitchell recently querying, “Why am I paying a fee for no service?”
About the author
About the author
Superannuation
Rest invests in US-based REIT amid changes in debt financing markets
In a strategic move that underscores the evolving landscape of commercial finance, Rest, one of Australia's largest profit-to-member superannuation funds, has announced a significant investment into ...Read more
Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more
Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more
Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more
Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more
Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more
Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more
Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more
Superannuation
Rest invests in US-based REIT amid changes in debt financing markets
In a strategic move that underscores the evolving landscape of commercial finance, Rest, one of Australia's largest profit-to-member superannuation funds, has announced a significant investment into ...Read more
Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more
Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more
Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more
Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more
Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more
Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more
Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more
