AMP Limited has revealed the degree to which has changed its superannuation business structures to accommodate the changes demanded by the findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The company has revealed to the House of Representatives Standing Committee on Economics will be simplifying its superannuation business by moving to one superannuation trustee and two funds.
As well, it has signalled key changes to its investment arrangements with respect to superannuation.
Replying to a question no notice from the House of Representatives Standing Committee on Economics, AMP said that the simplification process was anticipated to be in place by the end of the second quarter of this year and would involve AMP moving to one superannuation Trustee and two funds.
Replying to a question from Victorian Labor parliamentarian, Dr Daniel Mulino, the formal AMP answer said: “This will involve AMP simplifying by moving to one superannuation Trustee (NM Super), and two funds (one master trust - Super Directions Fund, or SDF - and the Wealth Fund, or Wealth)”.
“NM Super will play a more active role under this operating model, investing directly in superannuation assets (instead of via life-backed investment policies issued by AMP Life), directly engaging its investment manager and custodian and will engage a new related party service provider, AWM Services, to provide it with administration, product development and product development services,” the answer said.
AMP also provided a flow chart of how the new structure would operate.