In an investor presentation to the ASX, the number of advisers across AMP Advice, AMP Financial Planning, Charter Financial Planning and Hillross stood at 2,567 in December 2018.
This is down on December 2017 when AMP has 2,692 advisers in its network.
AMP said this was “largely due to exits from the industry including retirements”, as well as an “increased focus on reshaping the adviser network; shifting emphasis away from adviser numbers to productivity, professionalism and compliance”.
Further, it noted over the year an implementation of its education and training program for new advisers, Adviser Pathways.
Commenting on the result in a teleconference, AMP chief executive Francesco De Ferrari said a lot of the financial modelling in the past was really driven by the number of financial advisers.
However, based on his experience with this type of transformation in other advice markets, the quality of financial advisers is much more relevant than the absolute number.
“As this business increasingly becomes more difficult to run, I have seen a general trend of consolidation, where people who do financial advice on the side or have it as a part-time activity or would have a one-person practice, they would find it very hard to be able to comply with the new FASEA professional standards, and with all the other requirements are coming from running a compliant advice business,” Mr De Ferrari said.
“If you want my outlook, my outlook will be that we will be able to really partner with a larger and more professionally-run advice practices in our network, and they will tend to consolidate some of the fringes.”
Mr De Ferrari was then asked if the future is that there might be fewer advisers in the network, but AMP’s arrangements it’s made with larger advice firms to be able to consolidate the quality of the advice is what will be the change.
“That is correct,” Mr De Ferrari responded.
In an announcement to the ASX, AMP also announced its earnings in its Australian wealth management business declined $28 million over the 2018 financial year.
It said the result was largely due to higher margin compression from the MySuper fee reduction, weaker investment markets and the transition of clients to lower-cost, contemporary products such as MyNorth.
AMP said the reduced revenues were partially offset by lower controllable costs, while other revenue decreased largely due to advice impairments on the carrying value of client registers.
Further, it said it also acquired fewer minority stakes in advice practices than expected.
Good to see all the people preaching about professionalism and ethics using this web site do their best to act like a TROLL.
You should be ashamed of yourselves.
The first thing I learnt in business was not making pathetic generalized comments with no facts, however reading these comments just shows how low people go.. you make me feel sick.
…and yes I’m an ampfp planner who is professional and have clients who respect my service and advice.
See h pi w you feel by April.
There is not anyone in the industry who has a nice word to say about AMP.
maybe ferrari can work his charm on the reliant robin that is amp
Having worked in an AMP aligned dealer group I’m shocked it’s only 4.8%.. to blame it on retirements is laughable, it may account for a small number but the vast majority have either taken their businesses out of the network or individual advisers have decided that the stigma attached isn’t worth the hassle.
The top practices should all hand in their notices – AMP cannot change, its useless to the core. They have no idea what a real partnership is, their advisers are hamstrung by AMP’s sheltered workshop mentality. The RC should’ve blown vertical integration up and freeed us all from this cancer that is AMP.
No mention of the BOLR liability ??? I’m surprised the AMP advisers looking to get out aren’t getting a joint action underway !!!! via lawyers
Yes BOLR, that’s very curious isn’t it?
– a recent Australian article suggested a very big number to buy back Adviser books
– should AMP have a contingent liability on the B/S for this? Maybe but would need a lot of practice valuations
– didn’t get the full effect of the RC and end of Comms in the departure numbers yet!
“Rotten all the way through” said Geoff Wilson last year. I tend to agree. Worst AFSL Management Team and dumbest PDMs in the Industry.
You can than Hayne for his recommendations which will eliminate AMP’s BOLR etc liability. Perfect. If God was AMP’s father, you AMP could not have wi as he’d for more – straight transfer of wealth from Adviser Practice to AMP by legislation.
So the systemic denial of risk claims, along with predictable gouging on existing risk premiums , begins in earnest from 1 July, as Resolution will not be seeking new business. AMP should apologize to its risk clients ( and the advisers who made AMP) for this massive betrayal of trust (“AMP will always be there “) . For those AMP risk policyholders who need cover, but are un-insurable, this is desperation city. What a mess.
Resolution will continue to accept additions, alterations etc for existing policy holders. Do some research…………. their primary goal it so keep business on the books. Will be keeping products up to current definitions. Just closed for new entrants….
Forget AMP.. this will be replicated 10 fold in the industry.. bring in the fresh faced uni graduates..
What uni student would want to join the financial planning ranks.
This is so funny, what do you want to be when you leave school Tim? A financial planner! Really Tim? You know its 4 years of study, then a professional year, then a exam. Then Tim , you need to find clients that will pay you directly from their pockets for advice. so you need to try to find rich clients that need advice as poor people wont be able to afford it. There is only a limited pool of these rich clients that need advice, so you will be competing against all the other advisers in the industry and of course your classmates. Then you will need to pay a ASIC levy, dealership fees, PI insurance, professional association fees and this will be over 35K before you even open the door. Oh well what do i charge? Who knows Tim, ask the uni lecturer….oh actually no they havent actually ever been in business. Just pick a hourly rate, make sure its ethical of course, and hope that clients will pay it. Will there be any value on my client book when I retire? We dont know, Tim we just dont know.
Lol… well said.. the uni kids wont know what hits them
Comment of the year!
having worked in AMP practices I can say the arrogance of the organisation that they somehow have compliance and quality advice under control is just appalling. They were uncovered in the RC for what they are, poor quality no idea sham of an organisation. As they say AMP stands for it’s Another Man’s Problem, no one at all in that organisation is interested in quality and it shows.
Are you saying AMP has no idea or the practices? Strange how you claim to have vcd worked in multiple practices – I guess you had something to offer for your employment? Where you employed to improve compliance or cut corner? What’s your skill?
No AMP – this reduction in Adviser numbers is not because of “Retirements” – It’s because we are embarrassed & ashamed to be associated with AMP (and their wider community)… They are a deplorable company, and should look at themselves and their lack of Adviser support if they are planning on staying in this industry.
I think you ain’t an amp adviser.. just my suspicion