Barrett’s AZ NGA gets AMP advice

AMP Limited’s advice business has become part of a partnership with Paul Barrett’s AZ NGA.

AMP has announced to the Australian Securities Exchange (ASX) that the new strategic partnership and ownership structure involves Entireti Limited and AZ Next Generation.

AMP said it would create a sustainable business model for AMP Advice while, at the same time, transforming the advice industry landscape in Australia.

As part of the partnership Entireti, which has a long-standing relationship with AZ-NGA – will deliver licensing and business services to AMP’s advice network with AMP Advice resources to transfer to Entireti.

Under the arrangement Entireti will establish a new joint venture entity to acquire AMP’s financial advice licensees, Charter, Hillross and AMP Financial Planning, as well as its self-licensed offer Jigsaw, with AMP to retain a 30% holding in the new company.

The purchase consideration is $10.2 million 70% being cash and the remainder being AMP’s equity stake.

AMP’s equity holdings in 16 financial advice practices wll be acquired by AZ NGA for a consideration of $82.2 million.