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.
Comments
Huh huh huh what a good morning laugh :- )
There is not an IFA in the country that will touch AMP products.
RIP AMP.
Actually there are some. They are the growing number of ex AMP advisers who still have clients in AMP products. The AMP head office people are looking at the raw numbers for IFAs and misinterpreting (misrepresenting?) it as growing IFA support. It is more likely just a reclassification of existing "supporters" from internal to external. Sooner or later those ex AMP advisers will transition their clients out of AMP products.
After what AMP has been doing to its adviser network in the last few years how can anyone give credence to what they are now saying?
AMP seeks to engage advisers????
Hahahahahahaha !!!!!!
You can’t kill something and then seek to engage it…it’s dead Alexis.
I watched the AGM and Debra was a bumbling mess and as for Alexis, she is playing the same tune as Ferrari. Blame the advisers for everything, treat them like lepers rather than partners than say "the division is not profitable" yet terminate all those small practices who were in fact profitable. They have no idea.
Alexis goes on to comment that 'They, AMP financial planning, what to become a smaller" . Sorry, didnt they terminate small profitable business only 2 years ago.....?
The manner in which AMP and that appalling individual De Ferrari treated their own advisers will never ever be forgotten not only by current and ex AMP advisers but by every single independent adviser across the country that witnessed the callous, deceptive and vitriolic manner in which a large corporate machine lead by De Ferrari who was only ever it in it for his own back pocket anyway, sought to destroy businesses, families and individuals without any level of empathy, concern or consideration.
For Alexis George to take on this role is either stupidly brave,completely delusional or simply an opportunity to pack away significant funds for retirement.
I tend to believe it to be the latter
Its a question of trust Alexis, and noone trusts AMP any more. Unfortunately De Ferrari and Murray were idiots when they came up with their grand plan, they forgot about the human element. It will take decades for people to forget the countless lives they arbitrarily destroyed. You might be better off closing down the financial planning arm and setting free those loyal (or stuck?) remaining planners to walk a different path. Good luck to them!
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