AMP advice network to fend off retirement outflows
AMP plans to use its advice network and to encourage “adviser productivity” to mitigate any decrease in flows to its North platform as a result of customers in retirement phase drawing out their funds, says chief executive Craig Meller.
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.
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