When questioned about how AMP could provide quality advice “at a price consumers will pay” while also generating profits, Francesco De Ferrari acknowledged that the increasing complexity of regulation made that proposition difficult but that the company was working “very actively” on what he called “more episodic advice”.
“So not having a financial adviser throughout your whole investment life cycle, but only at specific points in your life journey, where effectively having good advice is absolutely pivotal to ensuring retirement outcomes. For example, when you decide to buy your first home, when you get married,” Mr De Ferrari said.
“There’s full scale advice, there’s episodic advice, and then there’s the part we still have some work to do with the government and regulators which is the provision of phone-based and digitally enabled advice and that’s the area that will effectively allow us to make advice not just affordable for all Australians, but also an investible proposition for shareholders.”
Mr De Ferrari said that “well run” advice practices were very profitable businesses, but that the licensing activity was “more challenging from a shareholder point of view”. AMP also shared more detail on its proposed demerger with AMP Capital, with Mr De Ferrari warning that the company had not yet committed to maintain a 20 per cent shareholding in the new private markets entity.
“Our current hypothesis from a board perspective is that we would retain 20 per cent to show support for the business demerged but there’s a lot of water to go under the bridge until the final determination and a final proposal will be put to shareholders for the demerger,” Mr De Ferrari said.
AMP narrowly avoided a second strike against its remuneration report at the AGM, with 76.82 per cent in favour and 23.18 per cent against.
Correction: This article originally used the phrase ‘exotic’ advice. Mr De Ferrari said ‘episodic’ advice.
They seem to stuggle with simple advice, so them giving “exotic advice” should be interesting to see.
Honestly.. just another demonstration about how little the senior management of wealth companies understand financial advice.
The reason a financial adviser can be helpful at points of “exotic advice” is because they have spent time building a relationship with people. This long term relationship means that they are there when life events happen and their opinion is valued and trusted because they were there when things were simple as well.
I do get that everyone thinks that financial advice is just a strategy and a financial model but it’s not. It’s a personal relationship built up over time and advice that is trusted and acted upon because great advisers are there in good times and bad.
This is the same idiot as when in one of his first quoted interviews said anyone earning under $80.000.00 does not need a Financial Advisor, no wonder AMP is such a toxic train wreck when you have the loose cannons at the top hiring an advisor disliker such as this goose.
[quote=Anonymous]I find it interesting that those that contributed to this mess are the same ones saying they can fix it…..leadership…what leadership…this guy is clearly delusional. Consider Standard 6 of FASEA please before making of with the dough you got for creating this farce…[/quote]
More exotic advice. De Ferrari had to go as during his tenure, AMP’s position had gone from bad to worse. ‘The licensing activity was more challenging from a shareholder point of view’. So it’s all about share holders and not account holders? AMP and their ilk must start listening and learning from its experienced and self employed financial planners. They are the ones taking the risks and wearing the penalties. Go back to the basics and recalibrate and maybe one day AMP will become the respected company it once was. Over the past 21 years AMP has made kinetic disastrous decisions, yet their key executives receive extraordinary remuneration. Now another banker has been appointed as AMP’s head.
[i]”and then there’s the part we still have some work to do with the government and regulators which is the provision of phone-based and digitally enabled advice”..[/i]…perhaps the regulators should start listening to actual Advisers and give AMP a miss. Just what are AMP going to say to these regulators…lie to them 22 times? Sexually harass some ASIC regulators even? My advice to the Regulators is when AMP Rings just hand up. Fairly evident we’re heading for some carve out for these guys, if AMP gets it way, and continued red tape and regulation for those Advisers and Aussies that actually want to sit down and talk to a human. Let’s hope ASIC get’s the message that AMP sells Products and we Advisers sell Advice.
I find it interesting that those that contributed to this mess are the same ones saying they can fix it…..leadership…what leadership…this guy is clearly delusional. Consider Standard 6 of FASEA please before making of with the dough you got for creating this farce…