The AMP Ltd (ASX: AMP) share price will be one to watch this morning.
This follows the release of an announcement revealing changes to its advice business model.
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Why is the AMP share price on watch?
The AMP share price could be on the move today after it revealed a new contemporary advice service model.
According to the release, AMP is introducing a new service model with its aligned advice network, marking a new era for financial advice at the company.
AMP's new model further prioritises its clients and will provide services to advisers which support the delivery of quality advice, improve practice efficiency, and help advisers grow their businesses.
Developed in collaboration with AMP adviser associations, the new model will be progressively introduced, giving advisers increased choice, flexibility, and transparency with how they partner with AMP and how they continue to operate their business.
Three key components
The contemporary approach includes three key components:
- A new service proposition and fee model for advice practices, which has been competitively benchmarked against the industry and reflects the services offered. It includes a set of core services as well as user pay services. AMP intends to phase in the new fee model from 1 January 2022 to 1 January 2023.
- The release of institutional ownership of clients from AMP Financial Planning to advisers, with the ability to transfer clients out of the AMP network. This change will take effect from 1 January 2022.
- The conclusion of client register buy back arrangements from 31 December 2021, with practice principals able to take advantage of current terms remaining in place until this date.
Management commentary
AMP's Managing Director of Advice, Matt Lawler, believes the changes are major step in the transformation of AMP's advice business.
He said: "These changes represent a new value proposition to our financial advisers, one that is centred around us being a professional services provider to quality financial advice practices. Today's announcement is another major step in the transformation of AMP's advice business. It is a new era for financial advice at AMP."
"Over the past few years we have worked with our financial adviser network to complete significant reforms, build robust and modern processes and are strengthening our compliance regime. With a lot of that hard work now embedded, it is the right time for AMP and our financial advisers to look to the future."
"AMP is committed to the future of advice and building a stronger financial advice profession together. Importantly these changes recognise that the financial advisers should be in control of their business. It is their business, it is their clients and with our support we are determined to be working with our financial advisers long into the future," he concluded.
The AMP share price is down 30% since the start of the year.
