Don't fear the move online: AMP

AMP yesterday launched an online sign-up function for its KiwiSaver scheme. It follows the launch of Quick Start Life a few weeks ago, which allows customers to buy up to $100,000 of life cover online.

Ruscoe said the online sign-up process was designed to make it easier for customers to join and manage their KiwiSaver accounts.

“It’s a well-documented fact that Kiwis need to be better prepared for their retirement. By offering customers the ability to join a market-leading KiwiSaver scheme online and offering options such as the automatically adjusting Lifesteps investment programme, we want to make it as easy as possible for AMP customers to focus on what they want their retirement to be,” he said.

“Kiwis joining the AMP KiwiSaver Scheme understand that retiring on New Zealand Superannuation is not their only option and that maximising retirement savings is paramount to helping Kiwis live the retirement lifestyle they want.”

Ruscoe said online sign-up was a way to take down a hurdle that might get in the way of New Zealanders’ preparation for retirement.

“It takes away another reason for not doing it. People can get on with managing their retirement savings.”

He said the response to Quick Start had been good and KiwiSaver lent itself to online sign-ups. “We’ve already got a leading online portal for people to manage their KiwiSaver accounts.”

Ruscoe said advisers would be encouraged to use the online tool. They would still get commission if their clients signed up via the website and could attach their adviser number to new applications.

Ruscoe said it was not AMP’s intention to sidestep advisers. “New Zealanders need as much advice as they can get.”

He said it was a big opportunity for advisers, who could then continue the conversation about retirement savings with their clients. “There’s less paperwork to fill out.”

Advisers could also set up an email to their database with a personalised link so that customers who clicked on the link and signed up would automatically attach the adviser’s number to their application, and earn commission for the adviser.

“It’s really about the adviser’s ability to manage the customer relationship,” Ruscoe said.

Advisers needed to adjust to new technology: “If a customer wants to sign up online and you don’t have that functionality, they’re not going to sign up with you.”
He said the online tool was something that would help advisers generate business.

Comments from our readers

On 2 May 2014 at 8:17 am Pragmatic said:

An offshore industry trend is for larger financial institutions to disintermediate the process of gathering assets.... ie: cutting out the middle man.

This trend works well for accumulators / price sensitive sorts, although tends to be counter-productive for investors seeking a professional relationship with a financial advisor

On 2 May 2014 at 1:57 pm graeme tee said:

This is interesting from a compliance point of view. Is AMP under the same know your client obligation as an advisor would be to identify the client ? If so, what's the point in an on line application if you still have to supply a certified copy of your passport, etc etc? Or does the ETA Act apply? this article raises more questions than it answers except you will still get your commission.

On 5 May 2014 at 9:59 pm f p said:

"Commission for the advisor"

I think it is time to break in to the 29th century. Any distribution model reliant on commissions to advisors is temporary at best - it won't be long before this archaic anti - client practice is banned. And not before time.

Very hard for our industry to become more respected when this type of skullduggery continues.

On 6 May 2014 at 3:22 pm AMP Spokesperson said:

Hi @Graeme Tee, AMP has the same know your client (i.e. AML) obligations as advisers. However, for some KiwiSaver members the identity checks can be performed at withdrawal rather than onboarding. AMP is also looking to enhance this online signup process to allow for electronic verification of identity.

On 7 May 2014 at 2:56 pm graeme tee said:

AMP Spokesperson,
Good to know that AMP does not have an advantage over competitors re: AML. However, I am intrigued as to how "some" KiwiSaver providers can perform identity checks at withdrawal which appears contrary to s. 11 and s. 14 of the AML/CFT Act which clearly says CDD must be performed when a relationship is established. Do these providers have some sort of dispensation from the FMA? Also, electronic verification requires, a "need to ensure that the trusted referee’s electronic signature reliably identifies the trusted referee and their approval of the original document". This quote is from the FMA as part of our AML audit so I would be really interested in how AMP propose to deal with this on line. As I see it any online application meeting this requirement would need AMP to be able to verify the "trusted referee" signature. Trusted referee doesn't include advisors ( unless they are a solicitor, JP, teacher etc) so it does present a significant hurdle to AMP unless some sort of exemption is or has been gained. News that the headhunters gang had the ability to obtain fake passports would surely make the FMA uncomfortable enough to be tightening up the KYC rules rather than loosening?

Don't fear the move online: AMP

Online applications are just another tool for advisers to use in their ongoing relationships with clients and should not be seen as a threat, says AMP’s chief customer officer, Jeff Ruscoe.

Friday, May 2nd 2014, 6:00AM 5 Comments

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