AMP rethinks limited licensing amid SMSF Advice exodus

Yesterday, ifa reported that almost 30 advisers operating under AMP’s SMSF Advice licensee have jumped ship to non-aligned dealers, with the lion’s share going to Akambo Private Wealth.

ifa understands the movement follows AMP’s decision to tighten its classification of authorised representatives and re-focus on fully-fledged, client-facing financial advisers rather than accountants operating under limited licences.

A source close to the matter, speaking to ifa on condition of anonymity, said the about-turn regarding accountants looking for a limited licence following the removal of the AFSL exemption on 1 July 2016, follows a number of disputes between the company and its SMSF-specialist recruits.

“It is not surprising that many of these accountants that joined [AMP’s] limited licence are leaving,” the source said.

“[AMP] was trying to run it like one of [its] other financial planning dealer groups but it became very clear that they didn’t want to do anything differently from what they had always done.”

While AMP offers a number of licensing options regarding SMSF advice, these incoming accountants were being pressured to upgrade to full authorised representative status in order to be more productive pushers of in-house product, the source revealed.

“If the accountants wanted to continue to provide advice just around the [SMSF] structure itself, then there was less ability for these advisers to place clients into AMP investments and managed fund products,” the source explained.

In addition, AMP’s in-house compliance requirements were seen to be more stringent than those of other licensees competing for business among accountants seeking a limited licence.

“One of these advisers spent 12 hours writing a statement of advice (SOA) to AMP’s standards,” the source said.

Akambo director Chris Willaton told ifa his company’s strong existing relationships with the accounting profession are a primary factor in the dealer group’s growth among this demographic of adviser.