AMP shifts adviser rewards
Australia's largest and most established dealer group is to fundamentally change the way it rewards its advisers.
AMP Financial Planning, renowned in the market for its strong sales culture, is to shift its focus from new sales to ongoing servicing of its clients. It will do this by changing the criteria by which advisers qualify for special awards such as overseas conferences.
Australia's largest and most established dealer group is to fundamentally change the way it rewards its advisers.
AMP Financial Planning, renowned in the market for its strong sales culture, is to shift its focus from new sales to ongoing servicing of its clients. It will do this by changing the criteria by which advisers qualify for special awards such as overseas conferences.
At the moment, advisers gain points from the number of new sales made, no matter how profitable these sales are to AMP. Under the proposals currently being con-sidered by AMP Financial Services executives, advisers will gain points based on net cashflow.
Recently anointed AMP Financial Services managing director Andrew Mohl told the recent AMP national sales conference advisers who bring in new business will still be rewarded, however, advisers would also be rewarded for retaining busi-ness.
Mohl said the new rewards system reflects AMP's status as a listed company and renewed focus on shareholder value.
"The primary focus of an old life company is on sales," he said. "This can mean that you have a situation where unprofitable business is cannibalising profit-able business."
AMPFP hopes to roll out the new rewards structure by January next year. In the meantime, the group has unveiled plans to raise the bar on the amount of reward points required to earn bonuses under its various incentive schemes. Last year, the group paid out $12 million in awards after budgeting for less than half of this.
AMPFP managing director Steve Helmich told the conference AMP is happy to blow the budget because it reflects the success of AMPFP advisers.
He said the renewed focus on AMPFP within the AMP group will continue.
"AMPFP is the outstanding distribution arm for AMP, bringing in 75 per cent of AMP's retail business," he said.
Last year, the 1200 AMPFP advisers brought in $4 billion worth of new business, up $1 billion on 1998. Average commission for an AMPFP adviser sits at about $140,000
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