Advisers await information on AMP sale

Advisers are waiting for more detail on what AMP’s sale of its life business, and planned IPO of its wealth management arm, will mean for them.

Friday, October 26th 2018, 6:00AM

Wayne Smith, TripleA

The financial services provider revealed on Thursday that it had sold its insurance business to Resolution Life.

It was planning an IPO in 2019 of its New Zealand wealth management business, including its KiwiSaver and pension arms.

AMP has 250 advisers in its qualifying financial entity, 45 through AdviceFirst and also distributes through hundreds of other financial advisers.

Simon Manning, chief executive of the AMP Advisers and Adviser Businesses Association, said it was early days for advisers. They had received the details of the deal at the same time as the market.

“We had been expecting pretty major changes but we didn’t know the details… the life side of the business has been around for many years and that appears to no longer be the case. That’s quite a change for the advisers in our group.”

The wealth management business that went on to be listed would be the “remaining part” he said. “We’ll wait to see what the details are."

It was not yet clear how the advisers might deal with the newly-listed wealth business, he said.

It was also not evident how the distribution deal between AMP and advisers would be transferred to Resolution Life.

“We are very interested in that aspect of the arrangement. That’s a huge part of our member businesses. We expect an ongoing arrangement but we don’t yet know what that will be.”

Wayne Smith, of TripleA, said he did not think it would affect advisers much at all. Advisers in TripleA have less of the legacy book of business.

“It will be interesting to see what happens to the New Zealand operation,” Smith said. “From our perspective, nothing much will change.”

Tony Walker, of AMP Dynamics Financial Services, said he took the view that every change was an opportunity. “If it opens an opportunity, it’s got to be a good thing.”

Tags: AMP