AMP looks to salaried channel for revenue

In an 88-page document provided to the ASX today, AMP outlined its growth plans, with one of its key strategies to “reinvent advice through AMP Advice”.

AMP Advice is the “technology-enabled, goals-based advice” business it began transitioning all advisers in its salaried ipac channel to in late 2016.

Under the plan unveiled today, AMP will seek “increased share of advice margin from AMP Advice” and to “leverage investments in AMP Advice”.

The wording indicates AMP is bullish on its salaried, goals-based business, and comes as all of its traditional dealer group businesses authorising third-party practices have seen a decrease in adviser numbers.

More broadly, the document says AMP will seek “additional advice margin delivering value to customer, adviser and shareholder”, and will do this in part via “equity participation to drive mutual revenue growth”.

It says additional “contributions” from its advice and SMSF operations will be crucial to its overall financial health and investor proposition.

AMP chief executive Craig Meller said the growth plans reveal the company’s commitment to financial advice and client-centric philosophy.

"Our strategy continues AMP's shift from a product and distribution business to a customer-led organisation focused on helping our customers achieve their personal goals,” Mr Meller said.

"The strategy is focused on realising our potential while adapting to an increasingly competitive market place and technology-driven disruption.

"The strategy will be underpinned by a continuing focus on operational efficiency and cost discipline right across the group."

The company will also be seeking increased wealth management revenues through strategic investment in Asia.

AMP looks to salaried channel for revenue

Aleks Vickovich and Larissa Waterson

Last Updated: 25 May 2017 Published: 25 May 2017