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.
Aha Tisk Tisk ,staying in there for the buyer of last resort option ,good for you , build up a business to SELL to a buyer of last resort ,meanwhile best not call yourself an independent financial adviser…or even an adviser …perhaps product negotiator!
Additional advice margin means selling IPAC which has a higher fee cost base to consumers
The path to least resistance is the amp way . The amp self employed advisers have tuned out .
Probably they can come out and say they’ll focus on AMP advisers because with the amount of legislative changes and compliance red tape occurring over the last few years, most advisers in Australia work for AMP anyway now. All part of the strategic plan really. Aren’t we glad we’ve had institutions like AMP representing advisers and driving the future of advice delivery in Australia.
It sends shivers up my spine when AMP uses the words “”financial advice” and increased revenue in the same sentence. It’s like the words Bunnings and Quality, or Made in China chainsaw and 100% safe, they just don’t go. Perhaps one day it will be flog more product and increased revenue.
Moving towards more salaried, AMP branded advisers is a good outcome for consumers. At the end of the day there is nothing wrong with these advisers flogging lots of AMP product if they are open about it and consumers are expecting it. Lots of consumers prefer to choose branded, substandard products, rather than searching for quality and managing multiple providers. If this also spells the end of the deceptively branded Charter and Hillross channels then so much the better. Those advisers should be forced to choose between being branded AMP, or leaving to join a non aligned dealer group.
Reading the tea leaves from the takeover offer, I don’t think those two AFSLs will survive the decade in their current format
All this product talk makes you sound exactly like the licensee you dispise so much.
I work for Charter, explain to all clients who owns Charter and rarely recommend AMP.
If you think an advisers worth is in the dealer group/licensee they’re linked to, you’re in for a bumpy ride. Quaility advice rarely requires products at all and if it does, it’s whichever product is best for the client. Regardless of brand.
Interested Tisk Tisk, why be with charter then? the product-subsidised low fees? the equity carrot when you were young? surely you must know some of the others operating undeer the same brand as you aint so ethical.
An 88 page document to come up these results. It could have been summarised on the back of a postage stamp as simply as this. “The results of LIF are that the Industry is imploding and advice levels are in free fall”. Congratulations to all those involved in negotiating the LIF outcomes.