The wealth giant has said it is confident the exit of more advisers from its ranks can be managed in time to meet the 31 December deadline for its buyer of last resort terms to be switched off, following Monday’s announcement that it would look to further shake up its advice model.
Advisers – some of whom were terminated in 2019 – have until 31 December to exit alongside the cessation of client register buy-back arrangements as part of changes to AMP’s new advice model.
Speaking on a conference call on Monday to coincide with the announcement, AMP’s head of advice, Matt Lawler, said though the company will not speculate on how many will exit, they remain confident all can be managed.
“We’re not going to talk about numbers, because obviously that’s going to play itself out,” Mr Lawler told InvestorDaily sister brand ifa.
“But we have a team that specialises in mergers and acquisitions and supports our advisers. We expect a lot of these businesses will be picked up.
“There’s a lot of advisers in growth mode… and for those advisers that deem that they want to retire or they want to use this as an opportunity to capitalise on their assets and to move, we’ll have an adviser that is keen to buy and we have a team that actually facilitates that.”
AMP has faced a protracted battle with many of its long-time advisers since announcing a drastic shake-up to its advice model in 2019.
Mr Lawler’s comments come just days after a spokesman for Labor senator Deborah O'Neill told ifa she is campaigning for AMP to negotiate “just terms of settlement” with the hundreds of planners terminated in line with the first round of changes to AMP’s wealth business two years ago.
“Senator O’Neill is continuing her fight for justice for the AMP advisers by continuing to meet with AMP advisers, the Australian Small and Family Business Ombudsman Bruce Billson, and the new CEO of AMP Scott Hartley, to negotiate arrangements that leave AMP advisers better off,” the spokesman said.
“She acknowledges the serious changes needed in the financial services industry following the Hayne royal commission, but AMP cannibalising its adviser network and driving them into desperation and poverty is not a change for the better, merely a repetition of the bad old task.”
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