AMP to increase adviser education standards

Under the arrangements, all existing and new advisers must hold a Certified Financial Planner (CFP), a Fellow Chartered Financial Practitioner (FChFP) or a Master of Financial Planning (MoFP) accreditation.

New advisers will be required to complete the qualification within five years of joining an AMP licensee, while existing advisers will have until 31 December 2019 to follow suit.

It follows CBA’s recent announcement that it will implement minimum education and training requirements for authorised representatives as part of its public response to parliamentary scrutiny of its advice businesses.

“This is a critical time for the industry and the measures we’ve announced today go to the heart of what we do – offering financial advice to help people live better lives,” AMP group executive, advice and banking, Rob Caprioli said.

“This commitment builds on our record of significant investment in the standards of professionalism for our financial advisers.”

In a statement, AMP noted that the required qualifications are post-graduate degree equivalent, “making AMP’s minimum requirements the industry’s highest”

As part of its new measures, AMP will also be establishing a Customer Advice Review panel by the end of the year to investigate any customer complaints about the quality of AMP’s personal advice.

In the case of inappropriate advice, the panel will be able to restore the customer to the position they would have been in had appropriate advice been given.

It will be chaired by an independent representative, comprise a CFP, FChFP or MoFP advice professional and AMP’s chief customer officer Paul Sainsbury.

The group noted in addition that when the proposed ASIC industry-wide adviser registry becomes avaliable, AMP will be making it available on its website.

“AMP stands behind the advice its advisers give to customers,” Mr Caprioli said. “That’s the benefit of seeking advice from an adviser backed by a large and trusted brand like AMP. We can make things right for those customers who don’t receive advice that’s in their best interests.

“The announcement today takes this commitment a step further.”

AMP will be rolling out a broad-ranging ethics and responsible decision-making program for advisers to support the measures, which will be in place by mid-2015.

The group said it is working with its licensees to ensure all AMP financial advisers have support to meet the new requirements.