AMP extends hand to hard hit advisers
AMP Financial Planninghas announced a $5 million package to support its financial planners, who are said to be suffering due to a slated split between AMP’s Australian and UK operations and a prolonged period of languishing performance that has seen a loss of public and investor confidence in the brand.
The support package will see a 10 per cent reduction in the dealership fee charged to AMP planners, communication support for planners who educate clients about the proposed UK de-merger, as well as new performance-based reward payments.
AMP Financial Planning managing director Greg Kirk says the program recognises the difficult conditions in which planners are currently operating.
“AMP is standing behind our planners because we believe that they are well placed to retain customers and grow their businesses,” Kirk says.
To take effect from June 1, 2003, and end on December 31, 2003, the package has been greeted favourably by AMP Advisers’ Association chief executive Neil Whelan.
“We are happy that AMP has devised to support its advisers who have been having a really tough time out there,” he says.
Whelan says the element of the package that will have the most relevance and effect for all “the rank and file” of AMP advisers is the reduction in the dealership fee.
The communication support on the de-merger will be up to $1,000 per adviser, to be reimbursed to those planners who decide to use one of the five optional communication packages for their clients.
AMP expects the dealership fee reduction and performance based payments to cost around $2 million each, while the communication initiatives will cost $1 million.
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
