AMP’s 30% advice stake eventually owned by advisers

AMP’s remaining 30% stake in its financial planning businesses may ultimately be owned by financial advisers.

As well, the new branding for the former AMP licenses is under development in consultation with advisers and is expected to be launched in early 2025.

AMP Limited chief executive, Alexis George has confirmed to Financial Newswire that while the company would remain a significant and supportive shareholder in the partnership with Entireti (Fortnum) and AZ-NGA it made sense to provide an opportunity for advisers to increase their shareholding.

George’s comments came as AMP Limited and AZ-NGA confirmed the completion of the transaction which sees Entireti acquire AMP’s advice licensees and Jigsaw for $10.2 million, with AMP retaining a 30% stake.

As part of the same transaction announced in August, AZ-NGA has acquired AMP’s minority stake in 16 advice practices for $82.5 million.

Commenting on the remaining 30% stake, George said she could not recall why the 30% figure had been determined, but that it signalled AMP’s willingness to as a shareholder to help ensure the financial planning businesses became profitable and sustainable.

The man heading up the new AMP advice entity, Matt Lawler said that because Entireti had acquired the AMP licenses, the transition had proved relatively seamless for the financial advisers involved.

He said that in terms of the advices businesses’ ongoing arrangements with the AMP North platform, there would be little change in circumstances where an open-architecture approach had been in place for some time and North had been required to compete on its merits.

From the AZ NGA/ Entireti end of the transaction, Entireti chief executive, Neil Younger noted that the business, now housing Fortnum Private Wealth, Personal Financial Services and the former AMP businesses (temporarily NewCo, now accounted for 1,300 financial advisers, 400 businesses and around 180 employees.

He said that, under the group’s new structure, the executive leadership team consists of:

Neil Younger, Group CEO and Managing Director;

Glen Castensen, Group Chief Operating and Financial Officer;

Daniela Mascarello, Executive General Manager, Group Risk;

Matt Lawler, CEO NewCo (AMPFP, Hillross, Charter & Jigsaw)

Matt Brown, CEO, Fortnum & PFS

Cassandra Salmon, Executive General Manager, Group Technology;

Simone Munro, Executive General Manager, Group People and Brand;

Nick Hilton, Executive General Manager, Advice Delivery; and

John Carnevale, Executive General Manager, Investment Services.

Younger said the company’s focus was not about being the largest, but about increasing its relevance for advisers and their clients.

“Our model supports multiple advisory brands and propositions under the one roof, underpinned by high quality, centralised shared services,” he said.