In its full-year 2023 results, the firm noted it had seen adviser number stabilising despite volatility in the broader market, with new advisers attracted to the business.
It currently has 866 aligned advisers, 112 advisers via its Jigsaw service and 330 aligned practices, but this is down overall from 924 aligned advisers and 366 aligned practices a year ago. The number of advisers via Jigsaw remains steady at 112.
The firm is now Australia’s largest licensee after Insignia sold off its Millennium3 business to WT Financial Group, which saw around 140 wealth and personal risk insurance advisers transfer over. According to Wealth Data, AMP ended 2023 with 862 advisers compared to Insignia’s 782 advisers.
George said: “We would have still had a slight reduction in 2023, but for the first time, especially in the last quarter, we saw advice practices come to AMP. And I have to say that was a real support for what Matt [Lawler] has been doing in that space; we are seeing many more enquiries than we clearly have over the years preceding.”
Lawler was appointed as group executive for advice last July as part of a restructure, which saw advice positioned as a standalone division. This also led to the departure of Scott Hartley, chief executive of wealth management Australia, who later joined rival licensee Insignia as chief executive to replace Renato Mota.
Adviser satisfaction with the firm’s licensee services was up from 6.8 to 8.1, with over half of firms generating revenue of $1 million-plus; George said Lawler’s team had worked to listen to advisers’ concerns.
“The advice satisfaction has moved up, and that’s about rebuilding trust, delivering on what we say we will do and not making fanciful promises that we don’t do. It’s the little stuff and treating them like an equal.”
Its advice division reported losses of $47 million over the period, but this was an improvement from losses of $68 million a year ago; George said the business is focusing on how it can make advice sustainable.
“We have to make this a sustainable business, and losing $47 million is not sustainable for anyone. At the same time, there are lots of changes happening, so let’s not be blind to thinking if there is an alternative structure that meets our advisers’ needs and meets our needs. We will continue to have those discussions and will seek input from our advisers about what they are looking for,” George noted.
“The advice satisfaction has moved up, and that’s about rebuilding trust, delivering on what we say we will do and not making fanciful promises that we don’t do. It’s the little stuff and treating them like an equal.”
Trust still a big issue! after they threatened to contest the BOLR decision, though they walked back from that, it just demonstrated how little the board at AMP understands the advisor relationship and the damage done.