In a statement, AMP said it had introduced a new service model within its aligned advice network, “marking a new era for financial advice at AMP”.
“The new model further prioritises clients with AMP providing service to advisers, which support the delivery of quality advice, improve practice efficiency and help advisers grow their businesses,” the group said.
The new model included three key components, AMP said – a new fee model competitively benchmarked against the industry that included core and user-pay services; the release of institutional ownership of clients from AMPFP to advisers as of 1 January; and the conclusion of client register buy-back arrangements from 31 December 2021.
Practice principals were able to “take advantage of current terms remaining in place” around BOLR until the end of the year, AMP said.
“While further advice practice exits are anticipated before the conclusion of buyback arrangements, AMP’s current expectation is these commitments will be covered by the existing provisions and capital allowances as part of its BOLR program,” AMP said.
“These changes represent a new value proposition to our advisers, one that is centred around us being a professional services provider to quality advice practices,” AMP managing director of advice Matt Lawler said.
“Over the past few years we have worked with our adviser network to complete significant reforms, build robust and modern processes and are strengthening our compliance regime. With a lot of that hard work now embedded, it is the right time for AMP and our advisers to look to the future.”
Chair of AMP’s Advisers Association Craig Armstrong said the new AMP management team had worked with the association to progress the new model.
“We believe this model creates a more sustainable business model for our members staying with AMP and supports the shift to the professionalisation of the advice industry,” Mr Armstrong said.
What products do AMP have left for planners? North or Flexible super, both of which are surpassed by Netwealth, Hub and Praemium. Once the good planners run for the door all that will be left are the ones with negative LVRs who cannot get out.
And, what planner in their right mind would choose AMP as a licensee? After all that has happened don’t AMP realize that no decent planner would touch them with a 40 foot pole?
Good luck to those who stay at AMP, you will need it!
There has been NO negotiation or consultation at all, there have been “take it or leave it” changes made over this time and now they are tripling adviser fees! Just what you want from a business partner!
Well, you now have more options.
Tripling to how much?
3x the current rate.
6 months notice is based on “new” terms, the validity of which is still subject to the courts. Assuming the initial decision to change terms was unlawful, then techicilacally the notice period shoudl be 18 months as per previous terms NOT 6 months
At what sort of licensing fees?
Expensive.
Ok so AMP give remaining planners less than 6 months notice before the end of the year to exercise current deal at 2.5x. Unless, i am mistaken, don’t planners need to give 18 months notice under the new 2019 BOLR Policy. So if these remaining planners lodged BOLR today they STILL WILL NOT GET THE 2.5X because they’ve missed the boar.
Mark 2, on AMP’s game plan……unbelievable.
You are mistaken. 6 months to put in notice for current (2.5X) terms.
Nothing about this company makes sense anymore. They are making decisions on the run. In this an indication of a company that is dying and they are trying to hang on by a thread. They need to euthanize and stop the pain they are inflicting on themselves and planners. Let us remember them about the good they have done and not the bad. AMP it is time to go!
It looks like they’re preparing for a sale of the advice business. The rhetoric would be that they’ve cleaned up their book of advisers so the ones remaining are the quality advisers. By marking to market the license fees they can sell the financial planning business at a market multiple assuming a low attrition rate. They may even move the remaining advisers into a new company/licensee in order to ring fence the potential liabilities (fee for no service etc) and now also no future bolr liabilities on the balance sheet.
OK AMP its time to come clean. How many remaining practices do you own and of those remaining, how many have negative equity loans to AMP Bank. And of those who still owe money to AMP Bank, can they change licensees. Strongly suspect all that has happened is that AMP has changed Advisor shackles for stronger, shinier ones with even more conflicts.
I am more optimistic. They are still a product provider and therefore unsustainable in employing or controlling advisers but they don’t seem to want to be the worst anymore.
Is this the end of this company? Surely the good operators will now leave, and nobody in their right mind will ever join again?
One would think that but that is not how many people behave.
AMP have equity in a lot of the larger practices. I’d also say they are leasing the clients from the smaller practices they destroyed in 2019-2021 to the mid tier practices to “encourage” them to stay.
Very sensible strategy and actually coherent rather than trying to preserve the old ways.
Some good diction there from the “group” lol
All BS they are crooks
Seem logical. But it makes you wonder why they didn’t do this before they sacked hundreds of advisers, paid them out on lower BOLR terms The good ones could have stayed around and decided their future instead of being sent to the wall.
They can finally run to the door? About time the small businesses at this shambles of a company caught a break.