Australian wealth manager AMP has introduced a new service model with its aligned advice network in a bid to transform its advice business.
The move comes as the firm looks to demerge its infrastructure and property units to create further value in the private markets business.
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Through the new financial advice model, AMP aims to offer increased choice, flexibility, and transparency to advisers on how they partner with it.
It will support delivery of quality advice, enhance practice efficiency, and help advisers grow their businesses.
AMP Advice managing director Matt Lawler said: “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.
“The new model releases institutional ownership. Buyback arrangements will also cease, with advisers having between now and the end of the year to make the decision to leave the network under their existing arrangements.”
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By GlobalDataDeveloped in collaboration with AMP adviser associations, the new model will be progressively introduced by the firm.
It will include a new service proposition and fee model for advice practices.
The new fee model will be phased in from 1 January 2022 to 1 January 2023, said AMP.
Additionally, the model will enable AMP to release institutional ownership of clients from AMP Financial Planning to advisers. It will also allow the firm to transfer clients out of the AMP network.
The company is also planning the conclusion of client register buy back arrangements from 31 December 2021.
Commenting on the development, The Advisers Association board chair Craig Armstrong said: “TAA has worked with the new management team in AMP Australia to progress the new services model for our members.
“We believe this model creates a more sustainable business model for our members staying with AMP and supports the shift to the professionalisation of the advice industry.”
Earlier this month, AMP has agreed to sell AMP Capital’s Global Equities and Fixed Income business to Macquarie Asset Management for a consideration of up to $138m.
In April this year, AMP ended its months-long talks with Ares Management for the potential sale of AMP Capital’s private markets business and instead decided to pursue a demerger.
