AMP cuts cord to in-house advisers

dealer group

8 September 2004
| By Freya Purnell |

AMP Financial Planning (AMPFP) is set to close its employed planner support channel due to the cost of servicing the relative small number of in-house advisers in the group.

The move will see AMPFP now focus solely on assisting its more than 1,000 self-employed financial planners, with the decision only impacting on 32 financial planners.

According to AMPFP managing director Greg Kirk, the number of employed planners within the dealer group has shrunk in recent years as more have opted to take the self-employed route.

“We reached the point where we only had a small number of employed planners and it was increasingly difficult organisationally to support a channel of that size. The strategic competence we have is more in supporting a partnership-type alliance with small businesses, and we find that that is the model we want to concentrate on,” Kirk says.

The lack of scale in the employed planner channel was also an issue, according to Kirk, with the economics of providing dedicated resources to properly service those planners and meet employer responsibilities proving unsustainable.

Kirk says that the employed planners have been given a number of options, including generous transition terms to become self-employed planners and redeployment within the group in other roles, and expects that the planners will have made their decisions and be ready to move to the next stage by September 30.

“There was a consultation period prior to the decision about the alternatives, and we have tried to have a strong and fair and equitable opportunity for [the planners] to consider.”

The decision was made in the context of an ongoing review of the planning model within AMPFP, with Kirk flagging further changes moving forward.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 4 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

5 days 16 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

4 days 20 hours ago