AMP refuses to front up on commissions in NZ

Last week, AMP Financial Services managing director Craig Meller welcomed the Ripoll Report's recommendation to cease commission payments from product manufacturers to help ensure advisers act in their clients' best interests. However,  a spokesperson for AMP NZ could not confirm whether the company would follow suit on this side of the Tasman.

"We keep informed about regulatory developments around the world because they offer insight into best practice and possibilities as we develop a world class investment proposition for our advisers and clients," a spokesperson said. "However we don't comment on their relevance in New Zealand as they have a unique context."

Commissions have been a contentious issue as insurers have taken a hit on their own margins in a bid to soak up advisers from their competitors, and the Consumers' Institute took another spray at the financial adviser sector last week when it called for commissions to be banned.

Consumer NZ has levelled its sights on the sector after it mystery-shopped 33 advisers and had an expert panel assess the quality of 17 investment plans, only three of which were rated good. The rest were either disappointing or rejected.