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Advisers flee Genesys, ipac dealer groups

AMP has reported a reduction in adviser numbers in its Genesys and ipac dealer groups, while its self-licensed and self-branded channels are experiencing growth.

Yesterday AMP unveiled its financial results to the end of 2014, indicating that while overall Australian adviser numbers grew by 2.4 per cent, there is leakage from some of its key businesses.

Unsurprisingly, the soon-to-be-defunct Genesys Wealth Advisers licensee lost 17 advisers, indicating a decrease of 7.8 per cent.

While a number of Genesys member firms have told ifa they intend to set up their own AFSL or join external dealer groups, there is no indication in the results that these fleeing advisers have left the AMP network.

The ipac business – which was acquired by AXA for $205 million before becoming subsumed into AMP in 2011 – has similarly lost 18 advisers, indicating a 10.2 per cent loss.

Charter Financial Planning and Futuro Financial Services – in which AMP holds a 10 per cent stake – experienced a combined decrease of 12 advisers or 1.3 per cent, while the Horizons Academy is down from 93 to 77 participants.

Meanwhile, a number of other channels are on a growth path, most particularly Jigsaw Support Services – a consulting business to boutique AFSL holders – which grew its ranks by 73 advisers, indicating a 42.7 per cent year-on-year increase.

AMP Financial Planning also bolstered its numbers to 1,727 – up from 1,706 in 2013 – making it the largest dealer group in the AMP stable by a large margin.

The SMSF Advice licensee experienced the most significant growth, with 71 new advisers joining the channel in 2014, indicating a jump of 124.6 per cent.

The company also announced yesterday that it is piloting a new “approach to advice” involving investment in digital technology and scaled advice.