AMP grows goals-based advice business

In October 2016, AMP announced the launch of the new AMP Advice model, which aims to make financial advice more accessible to Australians through a goals-based approach.

All advisers under the iPac license were transitioned to the new model.

Speaking to ifa, Michael Paff, managing director of AMP Financial Planning, AMP Advice, AMP Horizons and AMP Direct, said the business has now reached a second stage of growth.

“We have over 200 advisers operating in 24 AMP Advice practices across the country. Now that we’ve reached a good scale, we’re focusing this year on building out all the technology and systems to underpin the process,” he said.

“We’re also identifying how we can use some of this technology for our other licensee practices, helping them achieve greater efficiencies and become even more competitive.”

Earlier this month, Treysta Financial Life Management executive director Mark Nagle said the goals-based approach to advice is flawed since humans cannot accurately predict their futures.

Mr Paff, however, said AMP’s model works because it focuses on broad goals.

“We’ve found that the best way to engage people in their finances over the long-term is to focus on the broader goals they are trying to achieve,” he said.

“These goals are largely consistent across individuals with the emphasis changing throughout life, from owning your own home, protecting loved ones to retiring right.

“Our experience is that this approach makes advice more accessible to more Australians, more often.”