AMP advisers unhappy with offer

UPDATED STORY

Thursday, July 10th 2003, 9:09AM

AMP Advisers in New Zealand are thumbing their noses at a support package put to them by the company to help them through the period of poor investment market conditions and demerger process.

In Australia the company rolled out a A$4 million package to help support advisers as their businesses had suffered from the company’s corporate woes and poor markets.

The highlight of the package was a 10% reduction in dealership fees, but it also included communication support for planners who educate clients about the proposed UK de-merger, as well as new performance-based reward payments for advisers.

The New Zealand package is different because advisers don’t pay a dealership fee.

"The package was designed primarily to assist our advisers through a period of investment market downturn," AMP spokesman Rowan Macrae says. "The aim is to help our advisers maintain strong customer relationships throughout this period."

One of the biggest gripes from New Zealand advisers is that although AMP has increased the commissions on unit trust products, the offer’s not worth anything as they are currently selling Personal Retirement Plans (superannuation funds), as opposed to unit trusts.

Also risk advisers claim there was nothing for them in the package. A number of AMP advisers spoken to in New Zealand described the package as being virtually worthless.

“It would be fair to say we are disappointed,?one senior adviser said.

It is understood that the AMP Advisers Association is going back to the company and will express its dissatisfaction with the offer.

Macrae says the package includes "a significant marketing component with which advisers have expressed satisfaction. The package was not designed simply to pump more money into product sales.

A spokesman for AMP wouldn’t confirm what the package is worth in New Zealand, but did say it was substantial.

The company was planning to roll out some unit trust products in the next couple of months which the advisers would sell and would be eligible for the additional commission.

These include a capital protected investment.

The response from one adviser to this was simple: “Whoop-de-do.?

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