AMP Financial Planninghas announced a $5 million package to support its financial planners, who are said to be suffering due to a slated split between AMP’s Australian and UK operations and a prolonged period of languishing performance that has seen a loss of public and investor confidence in the brand.
The support package will see a 10 per cent reduction in the dealership fee charged to AMP planners, communication support for planners who educate clients about the proposed UK de-merger, as well as new performance-based reward payments.
AMP Financial Planning managing director Greg Kirk says the program recognises the difficult conditions in which planners are currently operating.
“AMP is standing behind our planners because we believe that they are well placed to retain customers and grow their businesses,” Kirk says.
To take effect from June 1, 2003, and end on December 31, 2003, the package has been greeted favourably by AMP Advisers’ Association chief executive Neil Whelan.
“We are happy that AMP has devised to support its advisers who have been having a really tough time out there,” he says.
Whelan says the element of the package that will have the most relevance and effect for all “the rank and file” of AMP advisers is the reduction in the dealership fee.
The communication support on the de-merger will be up to $1,000 per adviser, to be reimbursed to those planners who decide to use one of the five optional communication packages for their clients.
AMP expects the dealership fee reduction and performance based payments to cost around $2 million each, while the communication initiatives will cost $1 million.
