In a statement, AMP said it had introduced a new service model within its aligned advice network, “marking a new era for financial advice at AMP”.
“The new model further prioritises clients with AMP providing service to advisers, which support the delivery of quality advice, improve practice efficiency and help advisers grow their businesses,” the group said.
The new model included three key components, AMP said – a new fee model competitively benchmarked against the industry that included core and user-pay services; the release of institutional ownership of clients from AMPFP to advisers as of 1 January; and the conclusion of client register buy-back arrangements from 31 December 2021.
Practice principals were able to “take advantage of current terms remaining in place” around BOLR until the end of the year, AMP said.
“While further advice practice exits are anticipated before the conclusion of buyback arrangements, AMP’s current expectation is these commitments will be covered by the existing provisions and capital allowances as part of its BOLR program,” AMP said.
“These changes represent a new value proposition to our advisers, one that is centred around us being a professional services provider to quality advice practices,” AMP managing director of advice Matt Lawler said.
“Over the past few years we have worked with our adviser network to complete significant reforms, build robust and modern processes and are strengthening our compliance regime. With a lot of that hard work now embedded, it is the right time for AMP and our advisers to look to the future.”
Chair of AMP’s Advisers Association Craig Armstrong said the new AMP management team had worked with the association to progress the new model.
“We believe this model creates a more sustainable business model for our members staying with AMP and supports the shift to the professionalisation of the advice industry,” Mr Armstrong said.
