AMP: No more overseas trips

In a statement released today, AMP said the recent FMA report into life insurance replacement business highlighted that there were improvements that could be made in the industry.

Last month, the regulator took action against 11 advisers in its investigation into life insurance replacement business.  It found that half the 24 advisers it dealt as part of its review work either were not aware of their obligation to exercise care, diligence and skill or were in breach of it. Many did not recognise that incentives such as overseas trips and upfront commission could create conflicts of interest with their clients.

AMP said it stood behind recommendations that sought to address public perceptions of the industry and improve transparency, and had decided to conclude its offshore development programme.

“AMP is committed to promoting and supporting appropriate and transparent practices across our industry and as part of this we recognise that it is vital for providers to continue to review and evolve their sales and advice practices, including the provision of incentives like overseas programmes,” said Blair Vernon, AMP managing director.