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AMP refuses to speculate on adviser exits

AMP has refused to be drawn in on speculation about how many advisers will opt to exit the company by year’s end, following news the wealth giant will cease buyer of last resort arrangements across its aligned network.

Advisers – some of whom were terminated in 2019 – have until 31 December to make the decision to exit alongside the cessation of client register buy-back arrangements as part of changes to AMP’s new advice model.

Speaking on a conference call on Monday to coincide with the announcement, AMP’s head of advice, Matt Lawler, said though the company will not speculate on how many will exit, they remain confident all can be managed.

“We’re not going to talk about numbers, because obviously that’s going to play itself out,” Mr Lawler told ifa.

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“But we have a team that specialises in mergers and acquisitions and supports our advisers. We expect a lot of these businesses will be picked up.

“There’s a lot of advisers in growth mode… and for those advisers that deem that they want to retire or they want to use this as an opportunity to capitalise on their assets and to move, we’ll have an adviser that is keen to buy and we have a team that actually facilitates that.”

Mr Lawler’s comments come just days after a spokesman for Labor senator Deborah O'Neill told ifa she is campaigning for AMP to negotiate “just terms of settlement” with the hundreds of planners terminated in 2019.

“Senator O’Neill is continuing her fight for justice for the AMP advisers by continuing to meet with AMP advisers, the Australian Small and Family Business Ombudsman Bruce Billson, and the new CEO of AMP Scott Hartley, to negotiate arrangements that leave AMP advisers better off,” the spokesman said.

“She acknowledges the serious changes needed in the financial services industry following the Hayne royal commission, but AMP cannibalising its adviser network and driving them into desperation and poverty is not a change for the better, merely a repetition of the bad old task.”

AMP refuses to speculate on adviser exits
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