Takeover, page-203

I'm in this industry and watch very closely what's going on - my views are below, many of which have been reported in the press at times;


AMP relies on FUM through its distribution channels (advisers) some salaried planners but many self employed under AMP as licensee.

the BLOR arrangements are a major problem for the business - as is its aging adviser network - this could go on for years where retiring advisers had planned to sell the business back to AMP for a multiple of revenue and now are being told they can't or its worth a lot less.

also ageing advisers usually have ageing clients - once clients reach preservation age (retired) they start to draw down the capital and contribute less - under a % of fees revenue model you get less as the asset value reduces - this is ok if you have more younger people in accumulation phase coming in the front door .......the RC has closed the front door, but the back door is still right open .......

plus you have the fee for no service issue - who's paying this cost ? AMP or each advisers individual business who received the payment and didn't deliver the service ?

AMP controls the fee collection so could just enforce each business to pay $X each .....this would be an internal battle of epic proportions!


so I have no idea how they manage this major cultural issue internally ......it's a disaster........

ultimately without its advisers being aligned, its distribution channels performing - what does it become ? FUM will leave........