An email from Genesys managing director Tim Steele to authorised reps of the soon-to-be-closed dealer group – seen by ifa – confirms a deal is on the table to keep advisers within the group, but explains the final terms are still undecided.
“The key question yet to be answered is whether the proposed three times margin payment will be treated as revenue or capital,” Mr Steele said.
“We are seeking further advice and expect to communicate a definitive view by the end of next week.”
A document attached to the email lists a number of FAQs for Genesys reps, revealing that AMP will provide a rebranding allowance of $2,500 for stationery and $2,500 for signage open to all Genesys member firms who are moving to the AMP Financial Planning or Hillross stables.
While the document makes clear that “there will be no special deals for any member firms”, it also hints at making changes to the approved product lists of its other aligned dealer groups to entice independently-minded Genesys advisers across.
The document also explains that AMP fully intends to retain its equity stakes in various Genesys member firms, issuing a special warning to these practices.
“If a firm decides to leave the AMP group and terminates its member firm agreement, it should consider the impact of doing this on the agreements with AMP in relation to the equity investment,” it states.
More broadly the letter urges member firms to stay within the group, reassuring them that the closure of Genesys is not reflective of “unrest” within other groups.
“This is a decision made specifically about Genesys Wealth Advisers,” it states. “We are optimistic that many Genesys member firms will choose to remain within the AMP network.
“We respect the right of Genesys advisers to make a choice about their futures … we expect there will be advisers who will opt to exit the AMP group but hope the majority of member firms will choose to stay.”
AMP recently announced it was closing the dealer group, following revelations of a dispute between member firms and the licensee published by ifa in September.
editor@ifa.com.au
Are you f*@king kidding Darren? watch out if adele ferguson gets a whiff of this. what a great message it would send if all the genesys advisers collectively turned down the greed and embraced the new world of independent best interests advice.
What an offer/ Go for it
Anyone out there remember ADL’s…
(Agent “Development” Loans) that were handed out like lollies with a promoted understanding that they never had to be re-paid !!
….until of course when National Mutual, AMP, Legal and General and others decided it was then time to give it all back and more…”because we own you and we can”.
Elephant in the room moment. One potential reason why the AMP will retain the equity investment is the AMP/AXA model paid for than a 4 times multiple. This is economically unviable and is not reflecting valuations today – the haggle therefore is practices wanting the equity back because of the closure of the Licence, but not being willing to pay what they got paid in the first instance…however Dealer fees are less if they cross sell AMP platforms or products. What a sad reflection on some but equally a moment of greatness for those seeking an advice profession to emerge. There are alternative AFSL’s that believe in consumers winning and advisers being able to act in best interest with open architecture.
Quell surprise !!!
“” If you have them by the testicles, their hearts and minds will follow “
Richard Milhouse Nixon