Despite the reprimand it received from the Australian Securities and Investments Commission (ASIC) for misleading customers, AMP remains determined to pay commissions to its financial planners.

A recent ASIC investigation found 45% of AMP financial planners had not given sufficient reason for their advice to switch funds.

After entering a court-enforceable undertaking with ASIC, AMP is required to restate advice to up to 7000 customers – and there’s still discussion as to whether those customers will be compensated.

However, after releasing its results – a $424 million interim net profit for the six months to June 30, up 7% on the corresponding period last year – AMP CEO Andrew Mohl said he supported a diversified payment structure, including commission payments. But in the interests of transparency AMP has posted its list of approved funds on its website.

Mr Mohl told Sunrise Exchange News AMP believes that consumer choice, supported by simple and clear disclosure, should be the fundamental basis on which the financial planning industry competes.

“That’s why, in terms of planner remuneration, AMP supports a fee for service – or paying upfront – as well as commissions, which are more of a pay-as-you-go method.

“We’ve been seeing and supporting a trend towards more payment by fee for service, and we expect that to continue over time. At the same time, we recognise many consumers have preferred, and continue to prefer, a pay-as-you-go method.”

Mr Mohl says AMP remains the market leader in superannuation, which is set to benefit further from simplification to the system following the changes announced in the federal Budget this year.

He says it is unlikely the buoyant market conditions of recent times will continue, but AMP is in good shape to capture scale benefits from volume and market growth, sustain its lowest unit cost position in the industry, and pursue strong growth in its core businesses.