MAGAZINE OF CHOICE FOR AUSTRALIA’S WEALTH INDUSTRY
www.moneymanagement.com.au
Vol. 34 No 5 | April 9, 2020
24
RETIREMENT
Retirement Income Review
FRAUD
32
Protecting your digital data
TECHNOLOGY
Retail v wholesale clients
AMP makes Anglican Super unhappy by stalling successor fund transfer BY MIKE TAYLOR
PRINT POST APPROVED PP100008686
Providing advice from home WORKING from home has been one of the biggest global shifts since the COVID-19 pandemic but what does that mean for financial advisers whose role is based on building relationships face-to-face with clients? By now, Zoom has become a household name and some advisers are also using the video conferencing platform along with Google Hangouts and FaceTime to meet with clients and build strategies. Over 87% of advice practices were dealing with the pandemic via phone consultations, according to a survey run by Money Management, followed by 80% using emails/chats, 53% were conducting video consultations, and 20% were still meeting clients face-to-face if required. While global markets ride through the volatility brought by the virus, client enquiries have shot up and advisers will need efficient and integrated technology to manage faster trades for their clients, according to WealthO2 managing director, Shannon Bernasconi. “It’s about the end-to-end workflow efficiency, the intraday aspect, and the bulk aspect across many lines,” she said. However, one of the biggest barriers advisers are facing is that some forms such as opt-in fees and binding death benefit nominations require a wet signature. Centrepoint Alliance group executive for advice services and solutions, Kate Anderson, said there were not many advisers that had an approved digital signature method. She hoped that Treasury and the corporate regulator would relax client consent rules over the coming weeks to allow for verbal or email consent. While the topic of advice fee consent is set to be tabled in Parliament under one of the Royal Commission’s recommendation, COVID-19 has ultimately pushed any sittings until August adding to more uncertainty and the need for relief measures.
05MM090420_01-15.indd 1
Full feature on page 16
36
TOOLBOX
AMP Limited has applied the brakes to corporate superannuation fund successor fund transfers claiming it is hamstrung by market volatility but at least one of the fund involved, Anglican Super, strongly disagrees. After deciding more than 18 months’ ago to part company with AMP and move to Mercer in the wake of the Royal Commission, Anglican Super has found what it thought might be a six-month or 12 month process having blown out to 18 months with AMP signalling further COVID-19 volatility-related delays. The situation has been confirmed by Anglican Super chairman, James Flavin who has told Money Management and Super Review that the fund has found dealing with AMP Limited on the successor fund transfer issue exasperating. “Moving up to Easter I can only cite the biblical quote from Moses – ‘Let my people go’,” he said. Flavin claims that, without prior notice to him or other members of the Anglican Super board of trustees, AMP had written to members of the fund and employers stating that the
successor fund transfer which was scheduled to be completed on 27 March had been “suspended”. The letter stated: “The trustee has a duty to act in the best interest of members and to promote their financial interests. Since the end of February 2020 financial markets have experienced extreme volatility, in relation to the development and spread of the COVID-19 Coronavirus. Given unprecedented market fluctuations, AMP Superannuation Limited (ASL) as trustee of the Anglican National Superannuation Plan (ANS Plan), has made the decision to suspend the scheduled SFT due to concerns in the current stressed market environment”. Employers also received an e-mail from AMP claiming “There has been a decision by the trustees of Anglicare National Super Plan to suspend the termination until further notice” and stating: “Owing this change, you can resume using the AMP clearing house eSuper for the interim to remit superannuation contributions, and generate new membership in the plan”. The Anglican Super board responded immediately that “Firstly, we continue to voice our protest to the unilateral decision of AMP to Continued on page 3
King confirmed as Westpac CEO WESTPAC has named its new chief executive – elevating acting chief executive, Peter King. Announcing the move, Westpac chair, John McFarlane said it was a case of wanting a chief executive in place now, and not later. He said King’s appointment was for a period of two years. King has been a long-term executive of Westpac having spent 25 years with the banking group.
2/04/2020 12:01:36 PM