AMP is questioning how it can improve its advice offering, acknowledging its advice business has been running at a substantial loss.
At its annual general meeting in Sydney, chief executive, Alexis George, said the firm needed to address the losses and make the division more efficient.
Some $200 million in earnings across superannuation and platforms was offset by losses in the advice business while Australian wealth management profit was also down 25% as AMP repositioned the portfolio to be competitive.
However, wealth management profit in New Zealand was up 11%.
George said: “When it comes to our advice business, we know how important providing financial advice for Australians is, and we remain committed to improving access.
“However, the current regulatory settings mean it is very difficult for a licensee to be sustainable and profitable. The business has been running at a substantial loss in recent years and is projected to do so in 2022.
“We are accelerating the transformation of advice by implementing a contemporary services model, embracing technology and ensuring the services provided are appropriately priced.”
There was strong potential in the firm’s platform business which supported aligned advisers and independent advice practices.
“We are focused on making our top investment management platform, North, a preferred platform for all financial advisers. While we have a network of aligned advisers, who know our systems well and use North, if we are to grow, we also need to engage independent financial advisers.
“We do this by constantly improving the capability of the platform, expanding the investment options available and ensuring we have the right relationship management in place.”
A number of savings had already been achieved, she said, and these would be visible in the firm’s next results.
