AMP aiming to be an ‘advocate for advice’ following licensee sale completion

The strategic partnership between AMP, Entireti, and AZ NGA that was first announced in August is complete, with Entireti acquiring AMP’s advice licensees and Jigsaw for $10.2 million, with AMP to retain a 30 per cent stake, while AZ NGA has acquired AMP’s minority stakes in 16 advice practices for $82.5 million.

According to AMP, the new partnership creates a “sustainable business model for AMP Advice”, adding that advisers will have the benefit of continuity of services, relationships and “retention of their community”.

Entireti, which houses Fortnum Private Wealth, Personal Financial Services and the new joint venture – currently still known as NewCo – now has around 1,300 financial advisers, 400 businesses and around 180 employees.

According to Entireti chief executive Neil Younger, there has been a smooth transition and minimal disruption to day-to-day operations for businesses thanks to the firm’s experienced team.

“Across the business, there is a sense of excitement and a strong alignment of vision and purpose,” Younger said.

“We’re excited about extending our position as the best service provider to advice businesses in the market, and we have the right team, operating model and strategy to achieve that.”

“Our size enables us to deepen our services and solutions for advisers and their clients. At the same time, as a house of brands, we can provide personalised service and support, and preserve and foster the characteristics that make each underlying proposition unique.”

AMP CEO Alexis George added that the ease of transition makes both the licensee and advice practice businesses “well placed to grow and prosper”.

“We know the difference that quality financial advice makes to the lives of many Australians and we will continue to advocate for a strong and healthy profession on their behalf,” George said.

“AMP will also continue to work closely with the advice community as we innovate and develop solutions which help them achieve the best possible retirement outcomes for their clients.”

No name change yet

Speaking with ifa, Matt Lawler, now the CEO of the NewCo joint venture, said there have been a lot of “mechanical” changes, however, there will be little impact for advisers under the transferred licensees.

“We've been spending a lot of time communicating with our people because that's a big change. They leave AMP and then they move to a new employer,” Lawler said.

“We've been very deliberate about making it as small a change as possible to them. We are picking up all the licences and transferring them across. That means that advisers don't really get impacted, that their business just continues throughout.”

While the transaction is now complete, there is no word on the final name for the joint venture just yet, with Lawler telling ifa it would be announced in the first quarter of 2025.

“We are going through a rebranding process right now as we speak and we're trying to do that involving the advisers and their staff, and getting them involved in giving us feedback on what the brand should stand for, some key description words and things like that.”

“We'll announce that in the first quarter of 2025 and we've got an advice live conference that's in March, and we'll be announcing it there.”

Separation from the product manufacturer

Lawler added that the split from AMP allows advice firms under the licensees to be “more fiduciary” and that they are “looking forward” to the separation between the product manufacturer and the advice business.

“We believe overall that the way advice has evolved, these businesses need to be fiduciary. They need to sit separately from the product manufacturer,” he said.

“Even though we've got those tight links from history and also the participation with AMP, the business is set up to be standalone and to make its own decisions and flourish in that environment.”

Also speaking with ifa, George said supporting the joint venture team was a key reason for maintaining the 30 per cent stake in NewCo, however, that structure is set to change going forward.

“We've been pretty public [that] this was really to support Matt and the team and the advisers, for that matter, in making this a profitable and sustainable business … I have no interest in anything other than making this successful,” the AMP CEO said.

“We, and we said this to the advisers, will give 10 per cent of our shareholding to advisers once they're comfortable to be shareholders, and we'll look at the remaining 20 per cent over time. But the first 10 per cent has already been committed, and it's up to Matt and the advisers to decide how to allocate that.”

George added that she sees AMP’s role now as “being an advocate for advice”.

“We need to stand up beside advisers,” she said.

“They're a very important part of our business, but more importantly, we all know what happens if people get good advice. I think they need to have the voice of the solution providers as well as the advice group.

“So, we'll continue to do that, because advice is critically important, even though it's not fully owned by us.”

The move would also allow a greater break from the old days of vertical integration in the minds of consumers, George said.

“I do think it makes it cleaner from that perspective, and it makes it I think it's a better solution for the advisers, not having to answer that question, even though I think we stood on our own two feet as the best platform provider,” she told ifa.

Lawler added: “We've set up the business in the same way that any other AFSL would be set up with choice and with the opportunity to focus on the client, rather than be beholden to any product manufacturer.”

NewCo structure

Entireti also announced the new structure for the overall group’s executive leadership team:

• Neil Younger, group CEO and managing director
• Glen Castensen, group chief operating and financial officer
• Daniela Mascarello, executive general manager, group risk
• Matt Lawler, CEO NewCo (AMPFP, Hillross, Charter & Jigsaw)
• Matt Brown, CEO, Fortnum & PFS
• Cassandra Salmon, executive general manager, group technology
• Simone Munro, executive general manager, group people and brand
• Nick Hilton, executive general manager, advice delivery
• John Carnevale, executive general manager, investment services

“Our focus is not about being the largest, it’s about increasing our relevance for advisers and their clients both now and into the future,” Younger said.

“Our model supports multiple advisory brands and propositions under the one roof, underpinned by high quality, centralised shared services. We are an all-encompassing business partner to the advice community and our intent is to continue evolving our offerings to help advice businesses expand their capacity and capability so they can help more people and, in doing so, grow their business.”

AMP added that it anticipated an accounting loss on sale of approximately $36 million, due to separation and transition costs, which would be recognised in AMP’s FY24 results, to be announced on 13 February 2025. AMP Advice will be treated as discontinued operations in the results.