On Wednesday (4 September), ifa published one AMP adviser’s account of trying to sell their practice back to the group under its buyer of last resort (BOLR) arrangements.
In response to this story, an AMP spokesperson said changes to the group’s BOLR terms for aligned advice practices reflect changes to business valuations due to the ceasing of grandfathered commissions and other market disruptions.
“We have consulted through the process as required,” the company said.
“Advice practices with a higher proportion of grandfathered commissions as part of their revenue will be the most impacted by the buyback changes compared with those who have moved their business and client relationships to more contemporary fee structures.
“We’ve been working with our aligned advice partners about the changing market dynamics of the advice industry for some time, including around the increased compliance demands and impending removal of grandfathered commissions.”
The AMP spokesperson said the group’s new strategy for Australian wealth management is “focused on clients” and will bring “more advice to more Australians”.
“When AMP developed this new strategy, we thought carefully about how to help all advice practices address these challenges and choose the right path forward for them, their staff and their clients. This includes helping them to transition their clients to more contemporary fee structures,” the spokesperson said.
“We care about the welfare of our advisers and are treating this situation with care, empathy and respect. We continue to support advisers with a range of initiatives through this period.”
AMP said its strategy is to build a more professional, compliant and efficient advice network.
“Our face-to-face advice offering will be complemented by a ‘tiered’ advice model that caters directly to a broader range of client needs and wants. This will see AMP offer more advice, to more people,” the group said.
“Together with our advice network, we also want to improve the accessibility of financial advice for all Australians, and we are confident our new strategy will do this.”
As a Rural AMP planner recently given marching orders, with no other AMP adviser in the area I feel first and foremost for the client, the elderly that have held policies with AMP for years and now have no Local support, ring the 136267 number and shuffle your way through the options, hold for anything up to an hour and speak to a Customer Service Rep whom actually cant help you either, then hold for another 15 – 20 minutes while they transfer you to a specialist whom again cant assist you – Real Focus on Clients needs here AMP. you should be ashamed.
[quote=Not right]So if AMP care so much about its advisers, why are they switching off the GF commission trail 1 year earlier than even ASIC required. This is a massive kick in the guts for all the firms that still owe AMP millions of dollars for clients they bought that will not even pay them any income from Jan 2020 onwards.[/quote]
I don’t believe they are turning it off they just aren’t going to buy it back for any thing
So if the new strategy is focused on clients, the previous strategy was focused on greed, incompetance and theft. So is that a jail cell you see before you CEO and board?
If AMP cared about their advisers, they would be much quicker in addressing the issues they themselves have created including given a precise and clear answer about the loans that planners have. AMP is playing a game pretending that loans are a problem between advisers and AMP Bank and AMP Bank are pretending that the problem is between advisers and AMPFP, mean while advisers are stuck in the middle unsure if they need to be putting their family homes on the market
One group of people delighted with AMP’s new technology focused, anti adviser, strategy are the “buzzword” technology vendors.
“Roboadvice”, “Fintech”, “Regtech”, “Data driven” and “AI” vendors will be clamouring to sell not just their products, but their whole company, to AMP. These companies are desperate for someone with deep pockets to buy them out quickly before the market twigs that their technologies are mostly worthless hype. Should be the final nail in AMP’s coffin.
It seems AMP has moved strategy from ripping off clients to ripping off advisers AND clients.
Mutiny on the AMP.
It did not end well on the “Bounty”.
Very tough times indeed, however a united adviser front would be start. Unfortunately there are too many hypocritical egotistical advisers out there[/quote]
you will never get advisers united. the first thing most advisers do is to bad mouth other advisers.
this isn’t a profession. it’s an industry full of snake oil salesman and we deserve what we are getting.
think about it, would any other profession accept the constant belittling, humiliation, scrutiny so why do we?
[quote=AMP are the pitts!]Care about the welfare of advisers??? Spare me. The question is do you have the money to take them on”. AMP rely on the fact that they are the big guys and can bully their planners. A truly despicable organisation. [/quote]
it’s actually a brilliant strategy. because the adviser has no come back at all. what are their options (in the order of increasing hilarity):
a. mount a legal challenge ? nope
b. complain to AFA or FPA they are being bullied, hilarious but nope
c. complain to FSU – please
d. go to their local MP – ha ha unless you have a bag of cash
e. complain to their mum and dad
advisers have nothing, they have no choice but to go quietly. that’s why the public, the media, and regulators think financial planners are a joke and can be blamed for everything. even when it’s not their fault. why not? we have no come back
Care about the welfare of advisers??? Spare me. They are not just doing this to aligned advisers and those that trigger BOLR, and are treating salaried advisers with long-term tenure in exactly the same way. Weaponizing compliance with the sole aim of withholding bonus payments and other contractual entitlements rightfully owed and with not a care in the world as to how this impacts planners in the long-run. I actually sort legal advice where the lawyer said “in terms of substance to AMPs case, there is nothing here in terms of significant compliance breaches. It seems to me that this is more of a case of AMP killing two birds with one stone, first they withhold payments rightfully owing to you and the second and possibly even more attractive side of this for AMP is that the manner in which they have terminated you means you will be unlikely to work in the industry again, therein removing some of the competition risk AMP face as advisers flee to other licensees and take AMPs clients with them. The question is do you have the money to take them on”. AMP rely on the fact that they are the big guys and can bully their planners. A truly despicable organisation.
It appears AMP Management took the same BS course that IOOF Management took. It’s all just words with no evidence of any substance. The well-being of many planners is being completely ignored irrespective of the rhetoric coming from Management.
Its not just AMP, all life and fund managers have thrown advisers under the bus with little to no support from FPA or AFA.
Very tough times indeed, however a united adviser front would be start. Unfortunatley there are too many hypocritical egostistical advisers out there
Seriously, I don’t see the amp business lasting beyond the next couple of years.. Clients hate the brand so do non-amp advisers and now their own advisers.. I couldn’t in good faith recommend the products and would be encouraging existing amp clients to move on given hatred and concerns on the longer term viability..
They care about the clients – I’ve seen a client today (not mine as her planner has already gone) who was told in writing that she can no longer deal with her planner who she really liked and who gave her an annual review but she can now call 1800 no one cares.
I am currently licensed with AMP and I will confirm they care about me — if I say something that hints at suicide I get an email with the counselling service mentioned though they will still bankrupt me due to their unethical behaviour in the time I have been linked with them.
Personally I hope they go the way of Kodak and given they are relying upon the use of technology and most of AMP need help turning on their computer I am comfortable they will go that way.
This it TOTAL B…. S….. Full of corporate speak! So does that mean, for the first time they (AMP) are NOW, as a business, focused on clients and not the AMP themselves and will no longer cheat, lie and steal from their own clients?
And what nonsense re QUOTE “We have consulted through the process as required,” They have NOT consulted with their Adviser Associations at all, and just railroaded these changes through. They have no concept of the emotional and financial turmoil they have and are creating within their own Adviser network. Personal and Family disaster is what the reality is for the Advisers!
AMP will not exist as a listed business within 18 months (FACT: Credit Suisse (Global) is already sizing the business up to take it private….. Now that is another huge story that needs to be brought out into the open now).
From reading these comments so far….[b]AMP: [/b][b][/b]0 Votes, [b]Pissed Off AMP Advisers:[/b][b][/b] 36
AMP’s focus on clients is the same type of focus a shearer has on the sheep that is being shorn
What a load of BS….
B.S Answer our questions then and stop hiding. I don’t think there’s a single planner who wants to stay with such an unethical company.
Supporting planners, what a joke. You have done NOTHING to help us, just thrown us under the bus.
We care about the welfare of our advisers and are treating this situation with care, empathy and respect. We continue to support advisers with a range of initiatives through this period.”
I call BS!. Sounds like the initiatives range from bankruptcy to just being broke.
So what was their strategy before? Clowns
Shut this rogue organisation down!
[quote=Anonymous]AMP will be the next Kodak[/quote][quote=Anonymous]AMP will be the next Kodak[/quote][b][/b][b][/b] let’s hope so. It’s time this unethical deceitful institution is scrubbed from history and relegated to University text books on how to destroy wealth.
April fools day…. gotcha
The AMP strategy five years ago was client focussed – that worked well!
This was a flawed process before all of these issues raised their heads, AMP is fudging and should hang their heads in shame
I know its hurts some people. I know for those advisers whose retirement was their BOLR. But, as much as you may not like it, what AMP has said is a reality in the changing world of financial services. AMP did work for a long while, years, getting advisers to change their pricing structure and they suffered some pain in realigning their books. She of the “rusted ons” continued to rely on grandfathered commissions and thinking they will never go – but you didn’t need degree to know they would eventually go.
More and more clients can, and want, to do more and more on-line. And they can. If they do your costs as an adviser reduce. If you’ve moved to a fee for service client value proposition the client is going to see you as a strategic partner not someone who just provides a product.
“…. the focus becomes profit”??? Let’s be very honest, the advisers have been doing the same so whilst AMP has messed up and is handling this change brutally I’d be careful around the profit accusations. And I don’t have a problem with profit, just be honest that we are all after that.
You either drown in the current storm or you take your advising skills and customer advocacy and move on to a better life.
“working with our planner”…. aka TERMINATION LETTER
What a crock
Despite their disastrous results Mgt only cares about shareholder returns which their KPI’s and bonuses hinge off
AMP will be the next Kodak
Keep throwing the boot in whilst we are down! Good job AMP !
yeah sure, nearly choked on my afternoon coffee and biscuit.. it’s got nothing to do with customers (because few of them will be better off). I think its got everything to do with screwing planners for extra $$$$$$$$$.
…and by the way, just in case you didn’t know… Grandfathered commission is still legal and I’m pretty sure it has not passed into Legislation.
Typical corporate spin. All ‘spokesman’ seem to sign from the same BS sheet.
Well done AMP,
Keep moving the goal post until the ultimate eviction out of the arena by the consumers!!
[quote=Annon]Every wealth manger, bank, fin institution says it is focused on the customer. They are just words until they can demonstrate where they have used that focus to make a decision that impacts their bottom line. The RC has shown that when the hard decisions need to be made the focus becomes profit. The focus on the customer becomes shallow rhetoric scribed on a poster.[/quote][quote=Annon]Every wealth manger, bank, fin institution says it is focused on the customer. They are just words until they can demonstrate where they have used that focus to make a decision that impacts their bottom line. The RC has shown that when the hard decisions need to be made the focus becomes profit. The focus on the customer becomes shallow rhetoric scribed on a poster.[/quote][code][/code][code][/code
AMP lost the plot when they demutualised and forgot about the most important people – the clients. Management focused on shareholders instead who now paid their salaries and bonuses – which we all know has been an outstanding success 🙂 :p.
Wow…thats groundbreaking! An advice strategy based on clients…no sh%% Sherlock! What was the strategy before?
I can’t believe what they say ’cause I see what they do. They used to say they were focused on compliance, until the Royal Commission showed they weren’t. They used to say they were focused on advisers, until the day came when they weren’t.
It’s better to die on your feet than to live on your knees. Pity AMP don’t know that…As for caring we now how this is playing out and how did that work for your shareholders?
This headline pisses me off, makes it look like the planners are the issue again. The overwhelming majority of planners within AMP and all insto groups have always “focused on clients”, now this insto come to the party with much fanfare. De Ferrari and Wade should be ashamed of the additional shambles they have created.
If AMP truly cared about its advisers, they would waive their debt to the value they are stripping from their business valuations. As for their customers (ie not “clients”) they will try to rip them off under the Robo model – where they provide a generic nothing service and charge them for it – instead of providing a service of value to the client. Good luck!! AMP will be out of business soon enough with their mounting legal suits – all of which they can’t win!
TOTAL BULLSHIT!
ALL ADVISERS please NEVER use an AMP product again, (unless you are already stuck in AMP’s dirty web).
Zero external adviser AMP product usage will see AMP continue to die, especially with less AMP advisers.
Good luck AMP with your Robo Advice / General Advice model to keep you afloat.
As for AMP management / spokesperson saying they are client focused – HUH HUH HUH what a sad joke AMP is.
We care for our advisers ( But just have sent out a ” Piss off “letter to half of them )
liars
Make no mistake, they should fear the institution. I’m hearing that compliance ratchets up the minute an adviser triggers BOLR at both AMP and MLC. I can’t imagine what happens if you were also critical of those institutions.
As George Costanza says… it’s not a lie if you believe it
Another lie by AMP! They have never consulted with the Advisers Association nor did they give notice under the agreed contractual terms.
words word words…*i have no idea what I’m talking about…words words words.
AMP are the most immoral company in Australia, and their senior advisers are leaches. I would recommend everyone exits this business.
Tiered advice ? Code for intra fund ‘advice’ where the call centre person knows nothing about the person but can somehow provide ‘general advice’. Makes a mockery of all the educational and compliance requirements imposed on advisers and creates a double standard. AMP really think the advice industry are that stupid to fall for that ?
Every wealth manger, bank, fin institution says it is focused on the customer. They are just words until they can demonstrate where they have used that focus to make a decision that impacts their bottom line. The RC has shown that when the hard decisions need to be made the focus becomes profit. The focus on the customer becomes shallow rhetoric scribed on a poster.
So if AMP care so much about its advisers, why are they switching off the GF commission trail 1 year earlier than even ASIC required. This is a massive kick in the guts for all the firms that still owe AMP millions of dollars for clients they bought that will not even pay them any income from Jan 2020 onwards.
why is it always a spokesperson for AMP these days…..why can’t a senior exec have the comments attributed to them