Shares of AMP Limited [ASX:AMP] grew by 3.49% this morning.
The growth comes from the financial services group’s defence against the negative backlash that they received while under review from the royal commission.
AMP along with the big four banks and other financial advice groups, have all been under fire due to their distribution of unethical financial advice to its clients.
AMP have stood their ground, denying its alleged practice of maintaining client platforms which are known to be uncompetitive on prices.
AMP ensures its customers will remain loyal
Customer loyalty to AMP mainly stems from insurance terms in policy and pricing that is not possible to retain if they go with another brand or different product.
InvestorDaily reported that AMP stated:
‘There are reasons why customers may choose to remain in these products other than for cost competitiveness, for example insurance terms (both policy terms and pricing terms) that could not be retained if the customer moved to a different product.’
AMP said that its customers choosing to remain on its platform proves that their advice is not inappropriate or unethical in anyway.
They believe there is no evidence that bears AMP responsible for breaching terms of misconduct.
AMP’s recent share increase doesn’t only come from its defence against the royal commission.
Its Australian wealth management arm recorded a high net cash outflow, remaining in 2017’s first quarter’s guidance.
Strong cash flows in real assets also helped them turnover a profit.
Its capital saw strong figures in its external funds which mainly came from real assets while its banking division made a great profit turnover.
Despite going through a tight market period, AMP still managed to pull through some positive figures in regard to its overall growth.
By ensuring great prices to its customers, losing business is of no concern for AMP at this stage. They will further continue to defend themselves from the royal commission.
For Money Morning
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