AXA advisers baulk at AMP contracts

Good Returns has obtained an update sent to members of the AAA Advisers Association - formerly known as the AXA Advisers Association - which says providers are producing Letters of Agreement that try to limit their liability under the Financial Advisers Act.

“No doubt each of these providers has had a legal opinion to support their view.  The AAA does not agree with this position and has obtained two legal opinions which contradict this view,” the letter from the AAA said.

“We believe that contracting out of the Act to avoid liabilities created by the adviser force is contrary to the spirit and meaning of the Act and its central intention of protecting the client. AMP is one of these providers.”

The AAA said there are three options for advisers who want an agreement with AMP: join the AMP QFE; stay on the current agreement which will be changed to include the auditing of adviser files and the establishment of an approved product list; or move to a more independent form of agreement.