AMP Limited has announced a new fee model for its aligned advice practices and a pathway to release institutional ownership as part of a new service model.
In an announcement to the Australian Securities Exchange (ASX), AMP said its service model with its aligned network would support the delivery of advice, improve practice efficiency, and help advisers grow their businesses.
The three components of the model were:
- A new service proposition and fee model for advice practices, which has been competitively benchmarked against the industry and reflects the services offered. It includes a set of core services as well as user pay services. The new fee model will be phased in from 1 January, 2022, to 1 January, 2023;
- The release of institutional ownership of clients from AMP Financial Planning to advisers, with the ability to transfer clients out of the AMP network. This change will take effect from 1 January, 2022; and
- The conclusion of client register buyback arrangements from 31 December 2021, with practice principals able to take advantage of current terms remaining in place until this date.
AMP noted that while further advice practice exits were anticipated before the conclusion of buyback arrangements, it expected these commitments would be covered by the existing provisions and capital allowances as part of its buyer of last resort program.
AMP managing director for advice, Matt Lawler, said: “We will be providing access to resources, technology and support to fulfil our two core promises to our financial advisers: to assist them to deliver a great client experience; and to support them manage and grow their business.
“AMP is committed to the future of advice and building a stronger financial advice profession together. Importantly these changes recognise that the financial advisers should be in control of their business. It is their business, it is their clients and with our support we are determined to be working with our financial advisers long into the future.”
AMP said the new service model was developed with AMP adviser associations.