AMP Limited has provided a key Parliamentary committee with an outline of how its reshaped wealth business will look following implementation of its simplification strategy, including moving away from life-backed investment policies issued by AMP Life.
Replying to a question no notice from the House of Representatives Standing Committee on Economics, AMP said that the simplification process was anticipated to be in place by the end of the second quarter of this year and would involve AMP moving to one superannuation Trustee and two funds.
Replying to a question from Victorian Labor parliamentarian, Dr Daniel Mulino, the formal AMP answer said: “This will involve AMP simplifying by moving to one superannuation Trustee (NM Super), and two funds (one master trust - Super Directions Fund, or SDF - and the Wealth Fund, or Wealth)”.
“NM Super will play a more active role under this operating model, investing directly in superannuation assets (instead of via life-backed investment policies issued by AMP Life), directly engaging its investment manager and custodian and will engage a new related party service provider, AWM Services, to provide it with administration, product development and product development services,” the answer said.
AMP also provided a flow chart of how the new structure would operate.
Comments
Looks like a bowl of Spaghetti
Looks like the internal combustion engine of a V12 De Ferrari !!
Designed to look and sound good, but destined to be a mechanical nightmare if something goes wrong.
Wade: We need a chart at least
Fiat: Yeah, the more convoluted the better. That will occupy them for a bit while we figure out what we are gonna do with this mess
What's-a matter you? Hey! Gotta no respect.
What-a you t'ink you do? Why you look-a so sad?
It's-a not so bad, it's-a nice-a place.
AMP will be the best super in the future
Reminds me of a body in a coffin that has been dressed up for viewing.
AMP is as australian as can be and we should get behind them and support them through the changes to the industry they are important to us i can understand the advisers diss appointment but its the government who changed the rules not AMP
Hi Gary, AMP may be an Australian firm but their lack of ethics as displayed during the RC had NOTHING to do with the government's rules or regulations. AMP has fleeced Australians for over a hundred years and the faster they cease to exist the better!
AMP sold its advisers out by selling them books of clients for 4x getting them to lend money to purchase said books, then changing the goalposts half way through to say no you only get 2.5x when you retire or you want to sell them back. This is outright unfair and has caused advisers to leave the industry all together, fall ill, mentally break down, be forced to sell their homes, and even worse. Weather you agree with this buying of books or not, this disgusting behaviour of AMP will never be forgotten, any adviser supporting them should have their heads read! The share price is stuffed, the clients themselves are leaving in droves, advisers no longer support it, the brand is ruined, AMP is not the aussie institution it once was.
You're obviously not an AMP customer, nor a Financial Adviser. I'm guess you're the new head of AMP.
AMP will be here for ever they are setting up the company for the future with easy to understand investments for all of us
Not a bad way of reducing head count at the same time. I gather there is still a fair bit of dead wood floating around. Areas like Strategy, Marketing, HR, Product Management and Workplace Super (or whatever they call it this week) would be a good starting point.
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