AMP has moved to allay concerns advisers within its newly acquired Axa Australia and New Zealand stable will not benefit from remaining with the financial services group after making a series of “welcome” offers to its advice network.
An AMP spokesperson said AMP chief executive and managing director Craig Dunn made an offer to Genesys Wealth Advisers (Genesys) yesterday, just weeks after a separate offer was sent to advisers within the remaining Axa advice group.
The spokesperson said the packages were “a welcome package from AMP to Axa advisers” with no conditions attached.
“They don’t have to commit to anything outside their current agreements in order to accept the package. It’s just been positioned as a welcome package,” the spokesperson said.
Earlier last month, Dunn contacted Axa advisers with a package that contained “five core elements” which included practice finance benefits, increases to marketing, technology and education support, enhancements to its buyout offer which involved moving from the current 2-3x recurring revenue to 2-2.2x total value including the Value Participation Scheme margin share.
“We’ve set aside $100 million for practice finance at very competitive rates to help you expand your business more cost-effectively. We have also extended the offer to cover the establishment, legal and stamp duty costs of up to $5,000 per loan. Through AMP Banking, this finance will be available at a significantly lower cost than most practices can access today,” a letter said.
The AMP spokesperson said the offer made to Genesys advisers differs to those made to other Axa advisers because of a recent change to Genesys’ adviser contract arrangements.
“We’ve just been through that [contract change] process not that long ago so it’s probably a little bit premature to go as far as we did with the Axa advisers, but there will still be some new elements in a welcome package to Genesys advisers,” the spokesperson said.
As well as making welcome packages to the Axa group, advisers within the original AMP and Hillross network also received offers.
In late March this year, AMP became the official owner of Axa Asia Pacific Holdings, the parent company of the Axa dealer groups.
AMP and its Axa Australia and New Zealand businesses have close to 3000 financial planners, 6000 staff and nearly $130 billion in funds under management.
