AMP drops industry funds

The industry superannuation funds movement has expressed disappointment at the decision by AMP Financial Planning to remove industry funds from its approved products list.

AMP Financial Planning announced in 2004 that it would be including the industry funds on its approved list, but said on Monday that it had decided to remove them because of low levels of client demand and the costs involved in maintaining the industry funds on the list.

Reacting to the decision, Industry Funds spokesman Garry Weaven said that he was disappointed but not surprised by the decision in circumstances where industry superannuation funds did not pay sales commissions.

“When AMP first announced it was including certain industry funds on its approved list, we foreshadowed that no business would be directed,” he said. “We saw the announcement as simply an attempt to deflect criticism.”

Weaven said AMP’s network of financial planners sold products to their clients and received sales commissions from those products, and in circumstances where industry funds did not pay commission there was no reason for planners to recommend an industry fund.