Purchasing client registers impacts AMP result
AMP Limited’s exposure to buyer of last resort (BOLR) arrangements with its financial planners impacted the performance of its wealth business, according to its first half report to the Australian Securities Exchange (ASX).
Revealing that the Australian Wealth Management division’s operating earnings dropped by $2 million (representing a one per cent) decline from the same period last year, AMP said this was largely due to “margin compression from MySuper transitions and a reset of the investment management agreement with AMP”.
However, the division analysis then pointed to the decline in ‘other’ revenue, noting that this was driven, in part, by negative one-off impacts associated with the purchase of client registers in the first half of this year on agreed terms.
The confirmation of the BOLR impacts follows on from the company’s full-year announcement in February when it said it had "deliberately reduced adviser numbers by tightening the classification of authorised representatives".
At the same time it said a higher than usual number of advisers had decided to retire or leave the industry in the face of challenging industry conditions and increasing education and professional requirements.
Recommended for you
ETF provider VanEck has announced its intention to launch a uranium and energy solution as global political agendas point to expansion in this sector.
PIMCO has announced the launch of a new active fixed-income ETF, marking its fifth active solution on the Australian market after the launch of four ETFs earlier in the year.
With the Australian advice market being a target for US private equity firms, a US advice commentator has shared lessons from his overseas experience, and why PE may be less attractive than initially expected.
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
