by Niko Kloeten
The AAA recently announced it had reached an agreement with AMP after nine months of negotiations, where the main sticking point had been AMP’s concern it could be liable for advice given on other providers’ products by advisers it had agreements with.
AAA members were given a choice between two agreements: an aligned agreement and a “self-compliance” agreement that bars advisers from using the platform.
“Effectively the aligned agreement offered the use of AMP’s wealth platform and basically you had to follow the procedures in place… you agree to follow those processes and just use AMP’s wealth platform,” AAA president John Wood said.
“With the self-compliance agreement the wealth platform is not available to use but you can still use all the other AMP products outside the wealth platform.”
Wood said members had generally been happy with the two options, with the majority choosing the more independent agreement.
“From our survey of our roughly 250 members the response back is that it has been favourably received. Advisers are happy to have a choice between self-compliant and aligned.
“Most have made their decision and general indications are the majority are happy to take the self-compliant approach.”
Wood said the AAA’s membership is evenly split between Authorised Financial Advisers (AFAs) and Registered Financial Advisers (RFAs).
“The aligned contract requires an adviser to only use products on the AMP approved product list (APL) and this relates to both investment and life insurance.”
He said AMP was following up “just a few” members that hadn’t made a decision yet.
“It’s important to note there’s been no pressure by AMP on any of our members to make a decision either way.”
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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