AMP wants to rebuild adviser perceptions of the brand
AMP Limited that just breaking even within its financial planning business remains one the company’s highest priorities.
At the same time, the company has reinforced that it is trying to improve its reputation financial advisers, generally.
Amid a promise by both the chief executive, Alexis George and the chair, Debra Hazleton to right-size the company’s operating model to reflect the fact it has become a smaller business, the company also made clear that it would be retaining around $500 million of capital deemed surplus to liquidity needs.
While pointing out to the company’s annual general meeting that the AMP had successfully driven down costs in its advice business it had not yet managed to find break-even.
“In our Advice business we successfully drove down costs for the second year in a row and more than halved the losses in that business, to further improve AMP’s overall profit position,” she said.
“Continuing to drive our Advice business towards breakeven is one of the business’ high priorities and good progress continues to be made,” George said. “In addition, relationships with the broader adviser community and AMP continue to improve which is a critical factor for success.”
On the question of AMP having become a smaller company, George said that it acknowledged that the company’s cost base “is too high for the size of the company we are today”.
Oh wow… where would one start? Just wow. Drove down costs of adviser business, like by continuing to screw them over and force them out without compensation you mean? Perhaps AMP meant by not settling in court with the adviser businesses but drawing it out as long as possible until none are left. Both are excellent strategies for cost reduction. Congratulations AMP management!