An AMP spokesperson has confirmed to ifa that the institution “has taken the decision to rationalise the Genesys business following a strategic review” and that it has made arrangements to transition Genesys advisers to other AMP groups, “for those that are interested”.
A source from within the Genesys network – speaking to ifa on condition of anonymity – says a number of incentives have been put for authorised reps to stay within the AMP network.
“Genesys will close and we have been told we have until April 30 [2015] to find new arrangements,” the source said. “We have been offered a deal to stay within AMP.”
The source said that advisers choosing to join another AMP group will be paid “three times conflicted remuneration”.
The move follows ifa’s revelation that a number of Genesys authorised reps have been threatening to leave the group over disputes relating to technology and financial product recommendation restrictions.
Genesys was acquired by AXA in 2008 and subsequently became part of the AMP network following the merger in 2011.
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I find it interesting that new BOLR arrangements are being offered under FoFA. Existing fair enough.
What , there is no longer a volume bonus ??? Amp be worried , no volume bonus or incentives to write only your product , they may all leave!!
Would it be cynical to suggest AMP is trialling a solution to its BOLR problem? Why pay 4 times, when you could get away with 3 (or less?)? How many will go independent given the opportunity for a sanctioned departure? Will external transfers be treated equally with internal transfers? At least it will give the AMP staff that can’t get holidays over Xmas something to do!
This is not uncommon – this is standard industry practice. Unfortunately, no amount of regulation will stop this from happening. And due to the confidentiality agreements (or similar agreements protecting the public image of the dealer group/parent company) that advisers have signed, this will largely go unreported (as long as it is not strictly illegal).
AMP made it very clear the Genesys AFSL Licence was not for sale.
So AXA gave advisers an incentive to stay when initially purchased and now they are getting another incentive to stay with AMP. Gees if you are an adviser in the right place at the right time you do ok.
Why do the advisers not simply pool their resources and buy the Licensee entity and become independent. Vertical integration is going to die sooner or later as conflicted remuneration is inherent.