Speaking at AMP’s annual results announcement in Sydney last week, Mr Meller said there is “good money for [AMP] to make out of [SMSF] administration”.
AMP will also be looking to provide the trustees of the SMSFs it administers with “other products and services from AMP”, he said.
“We see [AMP SMSF] delivering administration profits to AMP in its own right, but also further profits to AMP through the other products and services that we can provide to SMSF trustees,” he said.
“An example of that is on the banking side where we now have mortgages and deposits totalling more than $200 million provided through those SMSF platforms,” said Mr Meller.
AMP has grown the number of SMSFs it administrates from 9,100 in December 2012 to 14,835 in December 2013 via both organic growth and acquisition.
“That’s getting towards four per cent of the total market, and absolutely the lion’s share of the automated administration market,” said Mr Meller.
“It’s going to be a scale play, and we intend to continue to grow our share,” he said.
AMP SMSF includes all the accounts for Cavendish, Multiport, Ascend, YourSMSF and SuperIQ (in which AMP has a 49 per cent ownership stake).
Asked about future acquisition plans, Mr Meller said there were no deals “on the table” – but “if any further other opportunities come our way in that area we’d certainly consider them”.
AMP’s SMSF Advice business recruited an additional 40 advisers over 2013, up from 17 in December 2012 to 57 in December 2013.
An AMP statement attributed the “strong recruitment activity” to the requirement under FOFA that accountants providing SMSF financial advice either obtain a licence or become an authorised representative during the July 2013 to July 2016 transitional period.
Total financial advisers at AMP grew by 140 over 2013, up from 4,276 in December 2012 to 4,406 in December 2013.
“AMP is now focused on broadening distribution reach, developing advice capabilities and developing quality investment products tailored for the SMSF market,” AMP said in a statement.
Andrew – I love your comments above – step 2 : competition comes from other money managers – who will say – we simply get the trustees of smsf which we administer, to sign a document – don’t worry – we will look after everything for you for a set fee (which i will not tell you on your statement) and do your funds administration, including lodge income tax return and I will even find an “independent auditor” to get your fund audited as well (who audits only our SMSF’s)…. And you will have the right to sign the income tax return before it is lodged….
Step 3: Newspaper Heading “What does’Do It Yourself’ mean in a SMSF – cries SMSF Trustee”
With the invent of a new product called “How dare you think of managing your moneys” a SMSF trustee can now get all their super funds assets managed by their administrators….
I knew it that this will be the next step.
Roll out from an AMP fund – then use AMP as administrators and use all the AMP funds to manage SMSF cash.
Why not just let AMP manage it for you anyway in the first place….
AMP should do really well in this smsf space; they can add links so that they become a re-seller for many tools that will become widely used by Trustees grappling with ATO rules.
Links with Risk profiling( Finametrica) , Asset Allocation(farrelly’s) and Property markets (Domacom) could generate more profit per fund than administration ever could, plus be good for the SMSF’s development.
Well it was only a matter of time but what would the non AMP advisers who utilise the administration services of Cavendish, Multiport, Super Concepts think about that!!!
Hands off I would say. Expect a mass exodus of non AMP advised SMSFs to independent administration services