Deal may bar AMP advisers from pushing its products

AMP's 350 financial advisers may be stopped from recommending their own company's products under a new research agreement.

The company, which employs the country's largest group of advisers outside of the banks, yesterday said it had signed up Australian research firm van Eyk to help meet new requirements under regulations due to come in next year.

AMP Financial Services New Zealand managing director Jack Regan said New Zealand's unregulated market had previously meant it did not need the breadth and depth of research that more mature financial markets needed.

Changes pushed forward by the collapse of the finance company sector are set to make advisers more accountable for the advice they give.

Regan said AMP planned to become a qualifying financial entity in the early part of next year. The QFE status will mean it is responsible to the Securities Commission for ensuring all its advisers meet the new minimum requirements.

The relationship, which is exclusive to AMP for the first year, would result in van Eyk providing AMP's advisers with a recommended list of investments as well as research and support.

"That could mean we don't invest in our own products if van Eyk rules it doesn't pass," Regan said.