AMP looking to ‘breakeven’ on advice

In a speech at AMP’s annual general meeting on Friday, CEO Alexis George spruiked the bank’s ability to reposition and simplify its portfolio during 2023, including within advice.

“Our advice business continues to reduce costs and improve efficiency, as we make good progress to establish advice as a sustainable, standalone, and professional business,” George said.

“Adviser sentiment has further improved which is certainly encouraging.”

She added: “We remain focused on achieving breakeven in advice, and we are continuing to look at alternate structures with our adviser network.”

George argued that with the “extraordinary cost-of-living pressures” Australians are facing off the back of high interest rates and high inflation, financial advice has grown in importance.

“We appreciate that this challenging economic environment has meant that it is a very difficult time for many of our customers and shareholders,” she said.

“The financial advice offered through our advice network is more important than ever in assisting people to navigate this turbulent period. For vulnerable customers we offer hardship support while also providing free financial education for AMP super members, so they are more confident and empowered when making financial decisions.”

Debra Hazelton, who ended her tenure as AMP chair following the AGM, added that the institution’s role in financial education and advice has been “more critical than ever in the face of increasing and sustained cost-of-living pressures”.

“We continue to actively advocate for the reduction of policy complexity in the Australian retirement system, more accessible and affordable financial advice, and more focus on improving broad-based financial literacy,” Hazelton said.

According to George, while the superannuation system in Australia is well set up to help ease the burden of difficult economic conditions for people entering retirement, there still needs to be a greater focus on the retirement phase rather than just the “savings phase”.

“To help people navigate a complex retirement system, the need for advice is stronger than ever,” she said.

“We are pleased to see supportive government policy in this space, and we will continue to advocate on behalf of our members and the broader community, and seek to work with government, industry and regulators to better assist our growing number of retirees.”

Looking ahead, George said that AMP is looking for ways to create new revenue streams and innovation, including “progressing digital advice opportunities”.

“I recognise the challenges that many of our people, customers and members are facing given the current economic conditions,” she added.

“I’m proud of the way we are supporting customers, with an innovative retirement solution, a strategic focus on advice to give greater confidence in retirement, lowering superannuation fees, and delivering strong returns as high as 11.5 per cent in 2023 for the majority of our MySuper members.”

AMP has been on an extended campaign to rehabilitate its image among the advice community.

Speaking to ifa following the release of AMP’s 2023 financial results, George said there was a time when the firm didn’t listen to advisers, a wrong she intends to right.

“Matt Lawler and the team have really worked hard over the last couple of years to rebuild that trust. And to be honest, I spend quite a bit of time with advisers as well and that is important,” she said.

“There was a time when they weren’t listened to.”