AMP client waits 17 years waiting for costs to be reimbursed, admits boss – live | Australia news

Hayne intervenes here and asks Wilkins to clarify the MPA's position on acquired rights.

Wilkins: "Commissioner, we have examined the position of grandfathered commissions and now say that we support a gradual approach to eliminating grandfathered commissions."

D & # 39; agreement …

Hodge finds this very interesting.

Hodge: "Just to clarify things – and we can argue, if necessary, that you still submitted, even in response to the interim report, that there might be constitutional problems badociated with the ban. commissions with grandfathering rights? "

Wilkins: "Yes."

Hodge: "But did you say that, finally, AMP was not opposed to the abandonment of grandfathered orders now, in light of the community's feeling around grandfathered orders?"

Wilkins: "Yes."

Hodge: "And AMP argued that a reasonable transition period is needed to allow enough time for industry participants to implement the required changes?"

Wilkins: "Yes."

Hodge: "I just want to understand some aspects of this. The industry was consulted on the FOFA reforms in 2011? AMP had already gone from fees to service fees in 2010?

Wilkins: "For investment products.

Hodge: "FOFA reforms started on July 1, 2012?

Wilkins: "2012, 2013, of this order."

Hodge: "I think compliance was required before July 1, 2013?"

Wilkins: "Yes."

Hodge: "Has ASIC cleared another 12-month period during which it had adopted a compliance-facilitating approach?"

Wilkins: "Again, Mr. Hodge.

Hodge: "And almost eight years have pbaded since the industry was first consulted about FOFA reforms?"

Wilkins: "Yes."

Hodge: "How is it that more time is needed to implement the required changes?"

Wilkins: "I think that with respect to some grandfathered commissions, services are provided against this compensation, and advisors will have to have an additional period of time to be able to make payment arrangements for their commissions." with acquired rights to a more contemporary arrangement of the type at the act. "

Hodge: "This seems to be an extraordinary explanation for the delay. TEight years after AMP itself has gone to service fees. Five years after the start of the ban, four years after the end of the facilitation approach of Asic. Currently, advisors who provide a fee-for-service service have switched to grandfathered commissions. "

Wilkins: "No, I do not think that's the case, and that's certainly not what comes out of the work done with the AMP consulting network."