AMP says new advice strategy is ‘focused on clients’

On Wednesday (4 September), ifa published one AMP adviser’s account of trying to sell their practice back to the group under its buyer of last resort (BOLR) arrangements.

In response to this story, an AMP spokesperson said changes to the group’s BOLR terms for aligned advice practices reflect changes to business valuations due to the ceasing of grandfathered commissions and other market disruptions.

“We have consulted through the process as required,” the company said.

“Advice practices with a higher proportion of grandfathered commissions as part of their revenue will be the most impacted by the buyback changes compared with those who have moved their business and client relationships to more contemporary fee structures.

“We’ve been working with our aligned advice partners about the changing market dynamics of the advice industry for some time, including around the increased compliance demands and impending removal of grandfathered commissions.”

The AMP spokesperson said the group’s new strategy for Australian wealth management is “focused on clients” and will bring “more advice to more Australians”.

“When AMP developed this new strategy, we thought carefully about how to help all advice practices address these challenges and choose the right path forward for them, their staff and their clients. This includes helping them to transition their clients to more contemporary fee structures,” the spokesperson said.

“We care about the welfare of our advisers and are treating this situation with care, empathy and respect. We continue to support advisers with a range of initiatives through this period.”

AMP said its strategy is to build a more professional, compliant and efficient advice network.

“Our face-to-face advice offering will be complemented by a ‘tiered’ advice model that caters directly to a broader range of client needs and wants. This will see AMP offer more advice, to more people,” the group said.

“Together with our advice network, we also want to improve the accessibility of financial advice for all Australians, and we are confident our new strategy will do this.”