AMP has called out platform providers on the use of industry rate cards that give non-disclosed discounts to preferred clients depending on scale and other metrics.
In a release today announcing that the wealth giant would reduce fees on its own MyNorth, North and Summit platforms to combat the practice, AMP called for a more transparent approach from other platform providers.
“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,” new AMP Australia chief executive Scott Hartley stated.
“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.”
The use of rate cards – which platform use to entice licensees and advisers – distorts pricing and equity across super and pension products, AMP says, “as not all financial advisers using the same platform can access the same prices for their clients”.
AMP is offering administration fee reductions of “up to 22 per cent” on MyNorth immediately, and its North and Summit platforms on June 1 and August 1 respectively.
More than 90 per cent of North’s platform clients – which number over 210,000 – are on these three platforms. Pricing on its iAccess and Generations platforms will be reviewed in the second half of the year.