AMP pursues greater equity in planning
AMP Limited has flagged implementing increased equity participation in its financial planning network as it seeks to restore its fortunes and drive growth.
The company’s plans were outlined to shareholders today as part of an investor strategy growth which revealed a strategy heavily focused on the AMP Limited’s burgeoning relationship with China Life, and a further focus on driving efficiencies from wealth management underpinned by technology.
Where AMP’s problematic insurance business is concerned, the company signalled a pragmatic approach and a view to lowering exposures.
“The approach for our Australian wealth protection, New Zealand and mature businesses is to manage them for value and capital efficiency,” AMP chief executive, Craig Meller said. “These businesses have significant embedded value and we continue to look for ways to economically accelerate the realisation of this value.”
Meller described the wealth management elements of the strategy as being aimed at “changing the sector’s traditional economics by driving greater revenue from advice and self-managed superannuation fund (SMSF) services.
“We will help more Australians get more advice, more often through our transformed goals-based operating system,” he said.
However a drilldown on the company’s investor update reveals a strategy rooted in improved technology and greater equity participation with respect to planning practices.
The objectives outlined in the strategy involve “increasing share of advice margin from AMP advice”, “equity participation to drive mutual revenue growth” and “integrated servicing to support succession”.
The strategy also made clear that it saw its dealer group network as integral to the exercise as well as AMP’s platform business.
“Our strategy continues AMP’s shift from a product and distribution business to a customer-led organisation focused on helping our customers achieve their personal goals,” Meller said.
Recommended for you
As reports flow in of investors lining up to buy gold at Sydney’s ABC Bullion store this week, two financial advisers have cautioned against succumbing to the hype as gold prices hit shaky ground.
After three weeks of struggling gains, this week has marked a return to strong growth for adviser numbers, in addition to three new licensees commencing.
ASIC has banned a Melbourne-based financial adviser who gave inappropriate advice to his clients including false and misleading Statements of Advice.
KPMG has revealed how much CEO and chief investment officers at Australian family offices are earning, both in salary and bonus, and how they compare to international peers.
