News Round Up

Investors better off with financial advisers: KPMG; AMP moving to fee-based model; Ombudsman keeps ANZ offer open.

Monday, November 30th 2009, 6:33AM

Investors better off with financial advisers: KPMG
Investors are a couple of thousand dollars better off every year if they use the services of a financial planner, according to a KPMG research report in Australia. [Read More]

AMP moving to fee-based model
AMP says it welcomes the Ripoll Report and is moving all its advisers to a fee-based model.

The Ripoll Report’s key recommendations for the financial planning industry include financial planners having a fiduciary responsibility to their clients, a move to cease commission payments from product manufacturers to planners and the establishment of a professional standards board for financial planners.

“AMP fully welcomes the move towards greater transparency in the way consumers pay for financial advice,” managing director Craig Meller says. “We are supporting all of our financial planning practices to transition to a fee for service business model from July 1, 2010.

“In addition we have advised all investment and superannuation product manufacturers, whose products AMP Planners are authorised to sell, that they will no longer be able to include direct remuneration to planners as part of their product pricing,” Meller said.

Ombudsman keeps ANZ offer open
The Banking Ombudsman is inviting ANZ customers unhappy with their additional compensation from the bank over investments in ING's Regular Income and Income funds to contact her office.

Ombudsman Deborah Battell made the request after it was reported last week that 40% of investors who claimed for compensation had their requests turned down.

Battell said that she has become aware that some investors have felt pressured by the 21 day period to accept offers. "Investors are concerned that, if they come to the Banking Ombudsman, they will lose the bank's offer altogether if they do not accept it within 21 days."

She says it is "most unlikely" that investors will lose by coming through the ombudsman's office.

"Investors have a right to apply to the Banking Ombudsman for an assessment of their offer. If the Banking Ombudsman finds that the offer should have been higher then her recommendation will be binding on the Bank, irrespective of the 21 day deadline," Battell said.

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