AAA reaches agreement with AMP

The AAA Advisers Association (AAA) has resolved a dispute with AMP over adviser contracts, but the finer details of the agreement have yet to be revealed.

Monday, August 6th 2012, 6:00AM 5 Comments

by Niko Kloeten

The AAA, formerly the AXA Advisers Association, made the announcement to its members on Friday afternoon.

"The AAA Board is pleased to announce that after six months of positive negotiations, we have today ratified a new "self-compliance" agreement with AMP," it said.

"This has been a major exercise that delivers significant benefits to members. We believe over time that this will be industry changing."

The announcement said the AAA Board will shortly be undertaking a series of road shows to outline the benefits to members. A timetable will be communicated shortly.

"There are several AXA/AMP agency agreements on offer, so which one you opt for will depend on your business model. Therefore the Board recommends that members do not sign any AMP contract until after you have attended one of our road shows."

AAA president John Wood wouldn't comment on what the "self-compliance" agreement would involve for advisers, saying it would be "unfair" to tell media before members were informed at the road shows.

"It simply addresses AMP's view that if you wish to be completely independent then AMP have no liability on any advice you may or may not give on other companies' products," he said.

Wood said the AAA was "very pleased" with the details in the contract, which will be explained at the road shows.

Niko Kloeten can be contacted at niko@goodreturns.co.nz

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Comments from our readers

On 6 August 2012 at 7:12 am Bazza said:

So it is a nearly 'independent/broker' agreement? How can you separate when an adviser is giving, or not giving, advice on an AMP product? If the AMP product is an option for the adviser to offer the client, then the adviser is giving a recommendation or opinion to take, or not take, the AMP option. In my humble opinion you are either an AMP adviser or you are not. The AAA should just cut the apron strings or go back home and do as Mummy says.

On 6 August 2012 at 12:57 pm Amused said:

A good outcome it would seem for both the advisers involved and their clients. I love how AMP still try and use the "liability" angle to scare advisers who have the audacity to consider recommending another providers' products. What a dinosaur of a company. About time they looked at what other providers were doing instead of believing that AMP remains at the centre of the universe for advisers.

On 6 August 2012 at 7:39 pm Alone, naturally said:

I believe many commentators have missed the point - how many providers ARE prepared to stand by the advisers how distribute their product when it comes to the crunch?

I can tell you from experience - very very few. The fact that AMP have indicated that they will stand by advisers who distribute their product and follow their systems and protocols sets them apart/above other providers.

I am not a tied AMP Adviser

On 6 August 2012 at 9:41 pm billy the broker said:

Great comment by amused, some truths there:)

On 8 August 2012 at 9:51 am Bemused said:

I am bemused at the assumptions made and lack of knowledge of those who post here. I am an adviser within AMP's distribution channel and have access to a number of products which are neither AMP manufactured nor AMP while labeled. Seems to be a fair bit of urban legend out there.

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Lender

Flt

1yr

2yr

3yr

AMP Home Loans

6.24

5.25

4.99

5.65

AMP Home Loans $200k+

6.14

5.15

4.89

5.55

ANZ

5.74

5.25

5.45

5.80

ANZ Special

4.95

ASB Bank

5.75

5.19

5.45

5.75

ASB Bank Special

4.95

Bank Direct Special

4.95

BankDirect

5.75

5.19

5.45

5.75

BNZ - Classic

5.40

BNZ - GlobalPlus

5.99

5.25

5.65

5.80

BNZ - Mortgage One

6.40

Lender

Flt

1yr

2yr

3yr

BNZ - Rapid Repay

5.99

BNZ - Std, FlyBuys

5.99

5.25

5.65

5.80

BNZ - TotalMoney

5.74

Credit Union Auckland

6.20

Credit Union Baywide

5.85

5.45

Credit Union North

6.45

Credit Union South

5.75

eMortgage

6.04

6.15

6.69

7.19

Fantastic Home Loans

5.74

5.19

5.40

5.75

Fidelity Life

5.70

5.85

6.35

Finance Direct

6.10

6.45

6.69

7.10

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Flt

1yr

2yr

3yr

First Credit Union

6.45

General Finance

5.95

6.25

6.50

7.10

HBS Bank

5.65

4.95

4.99

5.65

Heartland

5.95

6.25

6.50

7.10

Heretaunga Building Society

5.75

5.25

5.65

Housing NZ Corp

5.75

5.25

5.40

5.74

HSBC Premier

5.99

4.99

5.25

5.45

HSBC Premier Special

Kiwibank

5.65

4.89

5.25

5.65

Kiwibank - Capped

5.65

6.50

Kiwibank - Offset

5.50

Lender

Flt

1yr

2yr

3yr

Liberty

5.64

Napier Building Society

5.80

6.00

6.70

Nelson Building Society

6.45

5.95

6.25

NZ Home Loans

5.85

5.25

5.45

5.75

Perpetual Trust

7.70

RESIMAC - lo doc

6.59

6.35

6.55

6.90

RESIMAC LVR <80%

5.59

5.35

5.55

5.90

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5.65

4.94

4.99

5.65

Silver Fern

5.95

6.10

6.55

7.05

Southern Cross

5.95

6.25

6.50

7.10

Sovereign

5.85

5.19

5.45

5.75

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Flt

1yr

2yr

3yr

The Co-operative Bank

5.70

4.94

5.35

5.75

The Co-operative Bank Special

TSB Bank

5.79

5.25

5.30

5.75

TSB Bank Special

▼4.88

Wairarapa Building Society

6.20

6.70

6.95

Westpac

6.24

5.19

5.45

5.90

Westpac - Capped rates

6.50

Westpac LVR >80%

4.94

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5.85

5.25

5.45

5.75