Takeover, page-37

They have put in place a team of private client and private banking people at the first second and third levels of AMP. They will now try to implement a private client and private banking strategy based on employed advisers.

AMP is not a good foundation for such a business. Not the right client base. Not the right skills across the organization. It is still at its heart a mass affluent client organization dependent on self employed advisers for years to come.

You can buy in different skills to run the place over time, you cannot economically change the client base or quickly change the DNA of your distribution base or the what type of business you are perceived to be.

AMP is not going to be perceived to be a Swiss bank for wealthy clients. AMP opened a private client business ten years ago, run by someone with the right skills - it failed.

So in in short I see a mismatch between the organisation’s dna, its strengths, the desirable strategy, the proposed strategy, and the skills at the top. This has been the problem at AMP for the last 5 years or more. Too many bank managers running a broad based financial services business. They are repeating the mistake.