AMP has rolled out a newly established service model for its advice network.
The model will “prioritise clients with AMP providing services to advisers which support the delivery of quality advice, improve practice efficiency and help advisers grow their businesses”, it said in a statement.
Developed in collaboration with AMP adviser associations, the strategy will be” progressively introduced, giving advisers increased choice, flexibility, and transparency with how they partner with AMP and how they continue to operate their business”.
The structure includes three key components:
- A service proposition and fee model for advice practices, which includes a set of core services as well as user pay services. The fee model will be phased in from 1 January 2022 to 1 January 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 1 January 2022.
- The conclusion of client register buy back arrangements from 31 December 2021, with practice principals able to take advantage of current terms remaining in place until this date.
While further advice practice exits are anticipated before the conclusion of buy back arrangements, AMP’s current expectation is these commitments will be covered by the existing provisions and capital allowances as part of its buyer of last resort programme.
‘New era’
Matt Lawler, managing director of financial advice at AMP, said: “These changes represent a new value proposition to our financial advisers, one that is centred around us being a professional services provider to quality financial advice practices.
“The announcement is another major step in the transformation of AMP’s advice business. It is a new era for financial advice at AMP.
“Over the past few years, we have worked with our financial 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 financial advisers to look to the future.
“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.”
