27 April 2018
You may be aware that a Royal Commission into the banking, superannuation and financial services industry is underway. For two weeks from 16 April, the Commission is focusing on wealth management and financial advice. Over the past few days AMP has appeared and subsequently received media attention.
What is the Royal Commission
The Commission has been asked to inquire into and report on misconduct in the banking, superannuation and financial services industry and will make an interim report later this year, with final recommendations delivered to the government early next year.
We, at Designed Wealth, welcome and fully support the aims of the Royal Commission. We want to help improve the community’s trust and confidence in our industry as a strong, stable, trusted financial system which is critical to our economy and all Australians.
Our relationship with AMP
It’s important to understand our relationship with AMP. We are licensed through AMP Financial Planning and as Authorised Representatives we operate under strict legal obligations which include the requirement to act in the best interests of our clients at all times.
It is our understanding that the impacted AMP clients with products or investments as acknowledged in the Royal Commission were reported to ASIC by AMP and were notified in 2017 with reimbursements refunded to them accordingly. The Commission is only just now reporting on the findings of that period and assessing the rectification program adopted by AMP at that time.
You may be wondering if this is a concern for your investment performance, we can assure you Designed Wealth financial advice provides underlying investment portfolios’ that are not directly invested in AMP Shares, therefore portfolios’ within any superannuation or managed fund investment are held within a managed fund or a diversified matrix of specialist fund managers, so you can feel assured that any performance is based on market and fund manager movement only within your preferred risk profile tolerance.
We do understand that it is disappointing and a shock for you, as well as for us, to read the media coverage in regards to AMP and the major banks under the current Royal Commission spot light. We stand behind AMP and have believed in their compliance and strong community ethics applied in the history of the company, however we acknowledge mistakes have been made by AMP and these mistakes are being brought to light now and may continue to hit the media coverage over the coming months and even into next year when the Royal Commission is expected to make its final rulings.
We also acknowledge these mistakes were made during a time of tremendous change in the financial industry and although inexcusable, we have been reassured by AMP Financial Planning that changes will and have been made to ensure these mistakes do not occur going forward.
Please remember Designed Wealth, as a self-employed practice, holds a licence to provide financial advice under the legal obligations of Australian law first with AMP Financial Planning as the licensee ensuring appropriate qualifications and changes within the legal requirements of the industry are maintained. Over and above the update of the legal requirements Designed Wealth Practice prides itself on ensuring our advice and service is ‘best practice’ for all its clients.
We hope this letter reassures you of your sound and non-impacted investments within the product as recommended to you by Designed Wealth, however if you would like to gain further clarification regarding your policy as recommended by one of our qualified financial planners, please feel free to call us on 07 3841 1200 or email us at firstname.lastname@example.org.