AMP strategy – fewer more productive advisers

The key message from AMP chief executive, Francesco De Ferrari in today’s half-year results and strategy reset is that there will be fewer but more productive advisers and changes to buyer of last resort arrangements.

The AMP strategy is underpinned by a more than $1 billion investment and a capital-raising, but the most important message for AMP advisers is contained in a strategy which entails a focus on “direct to client” solutions and “reshaping aligned advice (buyback changes; fewer, more product advisers)”

This appears to confirm the manner in which AMP will focus on the most profitable elements of its advice business while leaving others with the company's briefing materials stating 20 per cent of advice practices account for 60 per cent of revenue .

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It foreshadowed scaling up employed advisers, while scaling back aligned advisers.

At the same time AMP has declared it will further localise New Zealand wealth management, exploring options to divest and together with Resolution Life create a new holding company for its life insurance businesses.

The company has said its strategy would be supported by a $1 billion to $1.3 billion program to invest in transformation in doing so it also announced a $650 million capital raising

AMP announced that it also entered a revised agreement for the sale of its life insurance business to Resolution Life entailing $2.5 billion in cash and $500 million equity interest representing about 20 per cent of Resolution Life.

It said a new Australian-domiciled holding Resolution-controlled holding company would become the owner of the Australia and New Zealand insurance businesses.

The company declared a loss attributable to shareholders for the half-year ended 30 June of $2,292  million, leaving the company an underlying profit for the half of $309 million.

AMP also announced that its chief financial officer designate, John Patrick Moorhead had decided to leave the business and that the current AMP deputy chief financial officer, James Georgeson, had been appointed in an acting capacity.

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More pain for financial advisers. More ruined lives. Let's discuss the most recent suicides

These clowns can't even get the digital link to brief their advisers this morning about these changes working.
What hope have they got regarding going direct and using digital.
Sounds great but as usual with AMP delivery will fall well short.

lol, stumbled at first hurdle hey

did you check first its not your computer? just asking...

Looks to me like rearranging the deck chairs on the titanic !!

So they want to do a capital raising without publicly talking about adviser numbers, staff cuts and future plans? Not a very transparent market update

Why don't they just 'shut up shop' and do everyone a favour.

AMP advisers were committing suicide in the 1980's when the Agency Development loans were rapidly recalled after AMP Agency Managers were accused of informing the advisers (Agents) who had received them they would not have to pay them back.
Conscience is only a concern if you have one.

if it was originally a loan, in a legally binding contract,,,why would enforcing payment so devastating even if some BDM said it wasnt payable?

I really feel for all those advisers recruited by AMP and bought books of orphan clients - at full tote without files or even accurate contact details. They've been devastated financially...left with the debt, but not the value. The place has no conscience... There will be suicides.

I worked in an aligned AMP practice and I too was going to buy a book at 3x multiple from the practice principal but it became apparent over time that it was a ticking compliance time bomb set to explode after the person trying to sell it to me had offloaded it. I seriously dodged a bullet but I really feel for those that did as I could have very easily been one also!

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