A document sent by Genesys Wealth Advisers managing director Tim Steele to member firms of the troubled dealer group – seen by InvestorDaily – outlines a number of FAQs as the practices consider their options following the announcement that AMP will close the licensee it integrated as part of the AXA merger in 2011.
It reveals the wealth management giant’s intention to retain Genesys member firms within the broader network by transitioning them to its other channels Charter, Hillross or AMP Financial Planning.
As part of its strategy to keep the member firms, the document explains AMP will not rule out expanding the approved product lists of those three dealer groups, thereby allowing more independently-minded advisers to use competitor investment platforms.
Responding to the question of whether “Colonial and Macquarie platforms” will be added to the APLs, the document states that “existing APLs are not being changed at present”.
However, it adds that AMP will “review this option once we know more about the decisions being made by Genesys advisers on which licensee they will transition to”.
It also clarified that under the status quo there is a “waiver process” in place allowing “advisers to use a non-approved platform for their clients, if they believe it is in their best interests”.
In addition, the email to which the document was attached confirmed member firms are being offered an incentive payment of “proposed three times margin” for those choosing to stay within AMP – as previously reported by InvestorDaily – though adding that the company has not yet decided whether the payment will be “treated as revenue or capital”.
Those transitioning to the AMP Financial Planning and Hillross licences will also be eligible for a $5,000 “rebranding payment” to cover stationery and signage costs associated with the move.
The document says AMP expects some member firms will choose to leave, but expressed hope that many will take up the lucrative incentive offer.
It also seeks to assuage concerns that the closure of Genesys reflects wider “unrest” within the broader network.
“This is a decision made specifically about Genesys Wealth Advisers,” it states. “We are optimistic that many Genesys member firms will choose to remain within the AMP network.”
