AMP Horizons Group, an authorised representative of AMP, has completed an internal review after Australian Securities and Investments Commission (ASIC) surveillance identified a number of areas of concern.
These included the quality of the advice recommendations, aspects of the advice process used by AMP Horizons when obtaining client information and how clients’ reasons for seeking advice were identified.
“A detailed review was done by AMP and ASIC on client files for Horizons planners,” a spokesperson for AMP told Professional Planner Online. “While the majority of customer files assessed met or exceeded our expected advice standards, there were instances where the advice was not up to the standard we expect.
“Through the review it became clear that we needed to do more to support Horizons’ planners, who are new to the profession, to give clients the high quality advice we expect.
“We’ve made a number of changes, which centre on closing a gap in quality control between our paraplanners, who provide backend support, and Horizons planners.”
Compliance and cooperation
ASIC confirmed that AMP Horizons had made changes and enhanced its quality assurance process at the point before clients are provided with advice.
“AMP has cooperated fully with ASIC’s inquiries and ASIC acknowledges the constructive and prompt action taken by AMP to address its concerns,” said the regulator in a statement.
At its own initiative AMP has completed an external review of its advice process in addition to its own internal review. Measures implemented include:
- a program of advice policy reviews
- revisions to advice template documentation
- a restructure of the planner supervision arrangements, and
- a training program for planners and those responsible for planner supervision.
“ASIC commends AMP for its positive response to the concerns identified by ASIC,” commissioner Peter Kell said. “ASIC will continue to closely monitor the financial advice industry and what is provided to consumers by way advice.”
AMP will be giving regular updates to the regulator over the year on its progress.
Cabot Square’s P&L no-show
In related news, ASIC has suspended the Australian financial services (AFS) licence of Sydney-based financial planning business, Cabot Square Financial Planning Pty Ltd (Cabot Square) until December 4 2013.
Cabot Square’s licence was suspended after it repeatedly failed to lodge with ASIC its annual profit and loss statement and balance sheet, together with an auditor’s report for each financial year from 2008 to 2011.
Cabot Square has the right to appeal against ASIC’s decision to the Administrative Appeals Tribunal.
