AMPFP numbers set to drop below 500

Mike Taylor

Managing Editor and Publisher

31 May 2023

Amid renewed media speculation about AMP having been in line to acquire Westpac’s BT Panorama platform, new analysis suggests that the number of financial advisers employed under the AMP Financial Planning license is set to fall below 500.

The analysis, conducted by WealthData, has the number of advisers working under AMP Financial Planning license sitting at 503 out of a total of 908 advisers working under the AMP brand.

Speculation about the future shape and scale of the AMP business has increased as a result of Monday’s announcement about the exit of the company’s Australian Wealth Management (AWM) chief executive, Scott Hartley, and the dissolution of the AWM division.

Contacted by Financial Newswire, Westpac and BT Financial Group has refused to comment on the speculation over the future of the Panorama platform.

The dissolution of the AWM division, which has previously encompassed financial advice, the North platform and the AMP superannuation master trust business, has also led to speculation about the degree to which the still unprofitable financial planning business will be made to stand alone.

That speculation has also reflected upon the fact that a decision is looming out of the Federal Court Class Action mounted by financial advisers over changes to AMP’s Buyer of Last Resort (BOLR) regime which could have a significant impact on the company’s balance sheet.

While AMP last year halved the losses attributable to its financial planning business, it is expected to be at least another year before it achieves break-even and possibly as long as four years before it turns a profit.

As part of the broader AWM division the continuing financial planning losses were substantially offset by the profitability of the platform and superannuation businesses.

A number of licensee executives have signalled an interest in financial advice businesses currently aligned with AMP but have suggested that luring them to make a change is difficult because of the nature of commercial arrangements put in place by AMP.