AMP launches new advice business
AMP has launched new advice business, AMP Advice, with a focus on making goals-based advice more accessible to Australian clients.
The advice business, which launched yesterday, followed a two-year period of building the model, and testing it with advisers and customers. It came after AMP listed "piloting new advice models" as one of its priorities in August 2014.
AMP Group executive advice and banking, Rob Caprioli, said the new business came about in a bid to make it easier for advisers to provide goals-based advice to clients amid an ageing Australian demographic, longer life spans, and the rise of technology.
AMP Advice customers would have access to AMP's Goals Explorer technology and a goals coach, where they could choose from 29 goals identified by AMP as being the most popular goals.
"From our customers' perspective not surprisingly they don't wake up in the morning thinking about superannuation and insurance," Caprioli said.
"What they wake up in the morning thinking about is how do I put my kids through school, how do I buy a home or how do I pay off my home, how do I go about travelling the world, how do I when the time comes be okay in retirement."
The business would also have access to My Money Style, where customers can complete applications to reveal their behaviour with money and risk, and Advice Explorer scenario modelling where advisers and customers could develop lifestyle and financial plans together to achieve goals.
AMP Advice would sit alongside AMP's existing licensing network including Charter, Hillross and AMP Financial Planning, all three of which would continue to operate under their existing brands and structures.
There were currently 11 AMP Advice practices located around Australia, with a further 20 to 30 expected to be operational before the end of the year. This would equate to around 160 advisers operating under AMP Advice.
AMP's salaried employed advice business, ipac is moving to the AMP Advice model, with five locations now operating under the business, and the rest poised to transition in due course. The other six practices were from Charter and AMP Financial Planning.
AMP's network of advisers had the choice to transition to AMP Advice if they wished, Caprioli said.