AMP to launch new fee model

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.
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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.




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Can AMP implement something that lasts longer than a year?

No.

Yes.
Their share price reduction.
This implementation has been very consistent over the past three years and reasonably consistent over the past 20 years.

Haha, yes. Destroying shareholder value. Industry leaders at it.

Share price today is $1.08, the only reason why no one is attempting a takeover because it's not worthwhile

6 months notice is based on "new" terms, the validity of which is still subject to the courts. Assuming the initial decision to change terms was unlawful, then techicilacally the notice period should be 18 months as per previous terms NOT 6 months

Run advisers, RUUUNNN!!!!

I think that is what they want to happen.

Just like cutting the Buyer of Last Resort multiple from 4x to 2.5x, AMP is hoping that advisers will just abandon ship and not enforce their rights betting that advisers don't have the money to challenge AMP in court.

Lol, I'm already receiving approaches from other licensees wanting me to move to them, and the day hasn't even finished yet! Apparently AMP are about to paint to all advisers just how awful the AMP side of the exit process will be if they go down that path, its their only way of encouraging them to stay!

Out of AMP, no need for AMP to show how bad the AMP side of the exit process is, it's bad enough as it is.....AMP has very strange and illogical ways of encouraging advisers and its own staff to stay but then again, nothing at AMP ever makes sense.

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