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26 July 2021
AMP announced today a new advice service model, saying it marks a “new era” for financial advice at the business.
The model has been developed in collaboration with AMP adviser associations and will be progressively introduced, with the aim of giving advisers increased choice, flexibility, and transparency with how they partner with AMP and how they continue to operate their business.
AMP says the new model prioritises clients with AMP providing services to advisers to support the delivery of quality advice, improve practice efficiency and help advisers grow their businesses.
“Today’s announcement is another major step in the transformation of AMP’s advice business,” MD Advice Matt Lawler said. “It is a new era for financial advice at AMP.”
The new model includes three key components:
A new service proposition and fee model for advice practices, which has been competitively benchmarked against the industry and reflects the services offered. It includes a set of core services as well as user pay services. The new fee model will be phased in from January 1 2022 to January 1 2023.
The release of institutional ownership of clients from AMP Financial Planning to advisers, with the ability to transfer clients out of the AMP network. This change will take effect from January 1 2022.
The conclusion of client register buy back arrangements from December 31, with practice principals able to take advantage of current terms remaining in place until this date.
Mr Lawler says over the past few years the business has worked with its financial adviser network to complete significant reforms, build robust and modern processes and strengthen its compliance regime.
“With a lot of that hard work now embedded, it is the right time for AMP and our financial advisers to look to the future,” Mr Lawler said.
“We will be providing access to resources, technology and support to fulfil our two core promises to our financial advisers: to assist them to deliver a great client experience; and to support them manage and grow their business.
“The new model releases institutional ownership. Buyback arrangements will also cease, with advisers having between now and the end of the year to make the decision to leave the network under their existing arrangements.”
AMP says while further advice practice exits are anticipated before the conclusion of its buy back arrangements, its expectation is these commitments will be covered by the existing provisions and capital allowances as part of its Buyer of Last Resort program.
“AMP is committed to the future of advice and building a stronger financial advice profession together,” Mr Lawler said. “Importantly these changes recognise that the financial advisers should be in control of their business.
“It is their business, it is their clients and with our support we are determined to be working with our financial advisers long into the future.”