Speaking to ifa following the release of the company’s half-year results yesterday, Mr Meller said its North platform experienced a spike in outflows due to a higher number of customers moving into the retirement phase drawing down their accounts.
Mr Meller said that in order to boost flows into the North platform – which saw net cash flows drop 4 per cent to $2.3 billion for the six months ending 30 June 2015 – AMP will be relying on its adviser network.
He expected the network would continue to grow between “1 and 3 per cent” as it has done over the past three to four years.
“The more advice they can give to the more Australians, the more advice is likely to give an outcome of more money coming into North,” Mr Meller said.
“All of the customer transformation program, all of our activity driving more advisers and driving more productive advisers, ultimately will deliver growth in North flows.”
AMP planner numbers, however, dropped from 3,860 to 3,762 in the past 12 months.
Some of the decline can be attributed to the winding up of AMP dealer group Genesys.
According to the half-year results, 35 advisers remained of the 214 who were employed at the same time last year.
At yesterday’s results announcement, Mr Meller said that half the advisers formerly licensed under Genesys have stayed with AMP, specifically Charter Financial Planning.
“Of the Genesys advisers who have made a decision [regarding their licensee], more than half have stayed,” AMP chief executive Craig Meller said.
An AMP spokesperson also told ifa that while half of Genesys planners had stayed with AMP, the other half have transitioned to other licenses.
AMP Financial Planning planner numbers remained flat, with 1,716 advisers, while Charter had 978 planners, up from 917, and Hillross adviser numbers rose from 373 to 388.
However, Mr Meller also tipped that the company will see a greater number of advisers retiring when higher education standards are introduced.
“A lot of older advisers are going to say rather than do the degree qualifications they are going to retire,” he said.
“I wouldn’t be surprised if we come up to a period where we have those standards implemented that we see an acceleration of retirements.
“What you tend to see after changes like that is there will be a period when no one retires because everyone that was going to retire already has retired,” he said.
If a Planner is restricted to using a platform that is, say 1%pa, more expensive than other platforms then it becomes an issue.
[quote name=”SA”]This isn’t an AMP issue, it is the reality of how the industry works…..and not just aligned advisers. All advisers have a preferred platform. Even IFA’s! And I don’t have a problem with that. The platform is a commodity. the strategies and investment options are where the adviser should differentiate.[/quote]
This part I actually agree with. I like the attitude of the dealer group I am under that states that they are PLATFORM agnostic, however the investments you choose underneath that is where you really need to direct your focus. After all, the underlying investments are where the real performance is derived, the platform is mostly administration.
[quote name=”Dan K”]”How come none of their “advice channels” are labelled AMP?[/quote]
Their main advice channel IS called AMP Financial Planning. Agree with you about the others however.
SA, you are absolutely correct its not an AMP issue but an industry function. From an efficiency point of view all advisory businesses should look to using as few platforms as possible and frankly I support that for a small business. But its unlikely that one platform will suit all clients.
It is just product preference it is amplified in a VI model if all licensees under the same parent use the same platform and the MD, being totally transparent to his credit, says that is what they will do.
[quote name=”RT”][quote name=”SA”]Aren’t platforms commodities? Why the big uproar that AMP advisers will write to AMP North. It’s not a conflict. I hope my adviser is more concerned about the strategies for me than trying to pick a platform.[/quote]
You’re right a platform is a commodity but you need to be very careful with a strategy excuse if the outcome is always consolidation to the same platform. The strategy may be technically correct but is it a very fine veil for getting all clients into the same platform. Different advisers within the same licensee(s) using a strategy that supports differing platforms could perhaps be understood but what if ALL advisers in ALL licensees use the same platform? There is no way it would not raise the suspicion of the strategy not being totally BID for the client but BID for the parent.[/quote]
This isn’t an AMP issue, it is the reality of how the industry works…..and not just aligned advisers. All advisers have a preferred platform. Even IFA’s! And I don’t have a problem with that. The platform is a commodity. the strategies and investment options are where the adviser should differentiate.
[quote name=”SA”]Aren’t platforms commodities? Why the big uproar that AMP advisers will write to AMP North. It’s not a conflict. I hope my adviser is more concerned about the strategies for me than trying to pick a platform.[/quote]
You’re right a platform is a commodity but you need to be very careful with a strategy excuse if the outcome is always consolidation to the same platform. The strategy may be technically correct but is it a very fine veil for getting all clients into the same platform. Different advisers within the same licensee(s) using a strategy that supports differing platforms could perhaps be understood but what if ALL advisers in ALL licensees use the same platform? There is no way it would not raise the suspicion of the strategy not being totally BID for the client but BID for the parent.
Aren’t platforms commodities? Why the big uproar that AMP advisers will write to AMP North. It’s not a conflict. I hope my adviser is more concerned about the strategies for me than trying to pick a platform.
“The more advice they can give to the more Australians, the more advice is likely to give an outcome of more money coming into North,” Mr Meller said.
“All of the customer transformation program, all of our activity driving more advisers and driving more productive advisers, ultimately will deliver growth in North flows.”
Add to that AMP Insurance and you have your one stop AMP shop. How come none of their “advice channels” are labelled AMP?
@Mossy – 100% agree. Doesn’t matter how educated you are if your advice option is to simply use North at all costs.
The education standards but in place by all the banks/large instos are just keeping up appearances.
Meller’s lack of appreciation for quality advice will define his ‘legacy’ to the industry. When is the industry going to target the fat salaries of these guys. They have caused untold damage to the industry and do nothing to raise the level of service standards and quality of advice.
Confirmation from Craig Meller that AMP aligned advisers are just a distribution channel. What’s the point of having higher education standards and their ethics course if the outcome for clients is going to be: it is in your best interests to rollover all your money to North.
Incentives ? Is that money ?
Please disclose !!!
So here is the dilemma for Mellor. AMP wants to increase advice quality BUT it wants to “increase adviser productivity” to get more money into the North platform. Surely a major advice bias will now exist, if it hadn’t before. Going to an AMP adviser is going to be like buying a Model T Ford – you can have any colour you want as long as its black (North).