Enforceable undertaking hits AMP’s cashflows
AMP Financial Planning appears to have paid a price for the enforceable undertaking it entered into with the Australian Securities and Investments Commission (ASIC) in July, with a reduction in net cashflows over the period.
The AMP Financial Services September quarter net cashflows report revealed that while cash inflows increased by 16 per cent over the period, net cashflows were $21 million lower than for the same period last year.
The company said that it was likely there was a short-term impact on cash inflows in the quarter as AMP Financial Planning focused on changing planner processes and procedures in line with the enforceable undertaking entered into with ASIC.
By comparison, AMP’s separately branded financial planning distribution channel, Hillross, recorded growth in cash inflows of 21 per cent, with net cashflows up $30 million to $131 million.
The Australian Prudential Regulation Authority’s (APRA) trustee licensing regime also impacted AMP Corporate Superannuation’s direct sales force, which were down $775 million when compared to a year earlier.
The company said the large net cashflows recorded in the second quarter of 2006 marked the closing of the APRA licensing window and there had subsequently been a return to more normal flows in the channel.
AUTHOR
Mike Taylor
Recommended for you
After seven years at the company, Iress’ chief technology officer for wealth management APAC, Anthony Gerrits, has departed as the firm commences a search process to fill the role.
With advice firms thinking about scaling up in 2025, research has detailed the main avenues financial advisers say they have used for successful recruitment.
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
