Yesterday, AMP announced its half-yearly results, reporting a 75 per cent profit slump as advice remediation programs begin to take their toll.
An investor document to the ASX also reveals trouble for the company’s stable of advice licensees, many of whom have been referenced or tarnished by testimony before the royal commission.
The total number of AMP-aligned financial advisers currently sits at 3,123 across its licensees, down 7.3 per cent from 3,370 in the first half of 2017.
The decline follows a similar trajectory last year, dropping 14 per cent across the year. A statement accompanying the 2017 results described the reduction in adviser numbers as “deliberate”.
In 2012, prior to the introduction of the FOFA reforms, AMP had 4,276 financial advisers.
The 2018 half-year results also reveal a decline across almost all of the company’s “core licensees”, including a 10.1 per cent drop at Charter Financial Planning, 12.9 per cent drop at ipac, and 5.9 per cent drop at AMP Financial Planning.
More significant declines occurred at the AMP Horizons graduate academy and SMSF Advice licensee, with 73.2 per cent and 70.9 per cent drops respectively.
A statement from chairman David Murray did not reference the declining adviser force but mentioned the financial advice and SMSF businesses as being contributors to “revenue growth”.
He added that the board is currently “restoring confidence in AMP” and “giving attention to the transformation of advice”.
AMP may be facing criminal charges following potential breaches of the ASIC Act and Corporations Act identified by the royal commission.
Dont know who to trust with our well earnt money.
Here’s the bottom line. Big. Small. Makes no difference at all. If you are an adviser that has been collecting an asf and have not delivered the promised services. You are fv<#ed. This is not ASIC, royal commission or anything other than a breach in contract law. You took money and failed to deliver the promised service. No different to paying money to a bloke to build a wall and he never shows up. Read the law. The afsl is responsible to ensure you do what you promised your client. If you deivered, then you have no issue.
It won’t be long and advisers won’t be able to deduct fees from super – full stop. Just as grandfathered commissions are being canned – ongoing service fees will be canned and advisers will only be able to collect a fee at the time of review or contact. AFSLs better prepare for this day and start making it a lot easier to collect ad hoc advice fees. Mark my words – soon it won’t be worth the time or cost to keep providing FDSs and Opt-ins. Best to try and get rid of that noose around your neck.
The drop in AMP adviser numbers is only the beginning. You ain’t seen nothing yet. blood bath coming to town!
[quote=Anonymous]How can any of its staff still work there??? Vote with your feet if you have any integrity at all.[/quote]
Fundamentally, their people dont think AMP have done anything wrong. Stockholm Syndrome.
[quote=Anonymous] AMP just a little dust to wipe off compared to the other big 4. [/quote]
You are kidding, right?
Jeez put it back in your pants Aleks. What criminal charges? Where’s the relevance of that to this piece. Leave your personal agenda at the door.
Maybe you missed the part where Commissioner Hayne said that.
‘It’s deliberate, we want them to go….because they’re the ones not using our in-house products’
(from an ex AMP FP adviser btw)
‘Lies, damn lies and statistics’ – the biggest fall in AR numbers followed ASIC saying they only expected ‘advisers’ to be authorised. As a result adviser staff holding ARs, but not advising, handed them back!
How many of the reductions went to likes of Dover, MyPlanner, Beacon and other fastest growing dealergroups
Lol…. and all of these dodgy, small, boutique dealer groups welcomed them with open arms!!
Some one mentioned Dover ??? just like the AMP Academy , Fired up years ago to educate new advisors how to do things , then shut down , after the GFC , then started up again with a new improved plan to educate new advisors , perhaps time to shut it down again !!!
The bottom line is…Vertical integration is finished! And so is all the rhetoric that goes with it!
How can any of its staff still work there??? Vote with your feet if you have any integrity at all.
I’m not at AMP but maybe people have mortgages and other responsibilities so it’ll be difficult to just move so quickly even if they wanted to.
you talk about professionalism in the industry.. perhaps start with these posts
This is a ridiculous and some what insensitive post. People have financial obligations to meet and likely not the freedom to ‘vote with their feet’. they are also victims in this.
Nup. The standard you walk past is the standard you accept. People still working at the institutions are paying their kids school fees and mortgages with dirty money and they know it.
Mate, give up your grandfathered fees and dialled up for no service revenues and we’ll see. Muppet!
Gotta wonder what the remaining 3,123 still there are thinking. They’ve already publicly said they will consider throwing advisers under the bus by trying to claim on their PI insurance.
…just like every other dealer group I would imagine?
Waiting for a BOLR payout I reckon. They’ll be waiting a while
Guys, show some respect for your fellow colleagues. This is AMP and the banks not the FP’s fault.
Even so, have some empathy. Many may not be able to leave or have financial commitments like school fees, mortgages and the like that need paying.
If they are doing the right thing by their clients then so be it, if not then their clients will leave – simple.
Just show some solidarity.
Before you attack me – I’m an IFA and not affiliated with AMP (just love this industry and have see the bigger picture so have empathy towards others).
Thankyou. The advisers at AMP are no worse (and probably much better) that advisers anywhere else. They are victims of poor management and the inability of AMP to evolve with the times.
Advisers were incentivised to sell AMP products. Obviously. But this is no different to any other adviser who worked for a product manufacturer.
Dont get me started on the sales tactics of some independent advisory practices. Look at what National Sterling did to start with…
Reality, I reckon you’re a troll and not even a financial planner. If you are then you have a lot of time on your hands as you seem to be commenting on every story IFA publishes. Lighten up and see some positive rather than constantly attacking the industry you say you work in.
I am, although you’re entitled to your own opinion.
I just say some things other planners don’t want to hear, although they know they are true. No apologies.
Well I’m sitting on the other side thinking it must be so much worst for the ANZ, CBA and Westpac planners including the ones ARs that are self employed under these organisations! AMP just a little dust to wipe off compared to the other big 4. Advisers from all groups pay good money for these companies to do the compliance for our businesses, rules and systems and they are doing a shit job end of story! The Government are the main problem they set the rules, change the rules every second, they let the players into the market and its the FPs that always take the blame.
But it’s the industry who has been lobbying the government to water down the rules to make it easier to make profits. Now it back fired…
Have some integrity and ethics is the only way to go…
Too many MBAs looking after shareholder interests (and their own).
Their clients and staff, not so much.
Then we wonder why there is a Royal Commission
Actually, there are not that many with an MBA at AMP Management – or an FP qualificaton. In fact the qualifications of many of the supposed “key” people are pretty light. Have at look at the LinkedIn profiles for the Management Group in Melbourne and tell me if you would let them run an advice business.