Purchasing client registers impacts AMP result
AMP Limited’s exposure to buyer of last resort (BOLR) arrangements with its financial planners impacted the performance of its wealth business, according to its first half report to the Australian Securities Exchange (ASX).
Revealing that the Australian Wealth Management division’s operating earnings dropped by $2 million (representing a one per cent) decline from the same period last year, AMP said this was largely due to “margin compression from MySuper transitions and a reset of the investment management agreement with AMP”.
However, the division analysis then pointed to the decline in ‘other’ revenue, noting that this was driven, in part, by negative one-off impacts associated with the purchase of client registers in the first half of this year on agreed terms.
The confirmation of the BOLR impacts follows on from the company’s full-year announcement in February when it said it had "deliberately reduced adviser numbers by tightening the classification of authorised representatives".
At the same time it said a higher than usual number of advisers had decided to retire or leave the industry in the face of challenging industry conditions and increasing education and professional requirements.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
