AMP to book $36m accounting loss on advice transaction

AMP Limited has acknowledged that it will be booking a $36 million accounting loss resulting from the just completed transaction which sees its advice licensees and Jigsaw acquired by Entireti and with AZ NGA taking AMP’s minority stake in 16 advice practices.

The company said that it had completed the transaction which now creates a strategic partnership and ownership structure with Entireti and AZ NGA.

It said the new partnership creates a sustainable business model for AMP Advice, while providing advisers continuity of services, relationships and retention of their community.

The announcement said that as part of the previously announced transactions:

• Entireti has acquired AMP’s advice licensees and Jigsaw for $10.2 million, with AMP to retain a 30% stake.
• AZ NGA has acquired AMP’s minority stakes in 16 advice practices for $82.5 million.
• Anticipated accounting loss on sale of approximately $36 million, due to separation and transition costs, to be recognised in AMP’s FY 24 results.

AMP chief executive, Alexis George said successful completion of the transaction and smooth transition to Entireti and AZ NGA ensures the advice network is well placed to grow and prosper.