A leaked document has confirmed AMP is offering Genesys advisers a lucrative deal to stay within the AMP network, as well as an additional $5,000 “stationery and signage” allowance.
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.”
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 19 Feb 2019ASIC to ‘fully implement’ Hayne recommendationsBy James Mitchell
- 19 Feb 2019CFS hamstrung advisers as they left for DoverBy Adrian Flores
- 18 Feb 2019ASIC appeals Westpac best interests court decisionBy Adrian Flores
- 18 Feb 2019FASEA mostly funded by the major banksBy Adrian Flores
- 19 Feb 2019Great advisers are going to thrive: Dow JonesBy Eliot Hastie
- 15 Feb 2019ASIC to undertake harsher penalties against banksBy Eliot Hastie
- view all