AMP aims to lead advisory industry

There’s been a quiet revolution going on within AMP Financial Services which is likely to become apparent soon.

Thursday, August 26th 2004, 1:12AM

AMP’s 370-plus advisers are often considered by many in the advisory industry as little more than tied agents for the financial services giant. That may have been true in the past but no longer.

In the past year or so the company has been investing heavily in its advisory distribution force and setting them up to be leaders in the advisory space.

AMP Financial Services general manager finance, Stewart McRobie, describes it as part of a substantial re-investment into the New Zealand business.

“Our adviser network has a clear competitive advantage in this market. We have been investing in this distribution network to ensure customer focus, customer retention and productivity are at the forefront of advisers’ priorities.”

AMP general manager of adviser sales David Chote says advisers are adopting the “trusted adviser” model and are much more customer focused with a full financial services offering.

He says the industry has tended to look after itself in the past, not necessarily its customers.

“Consumers deserve better service from our industry,” he says.

Chote says AMP is taking a leadership position, as is befitting such an old and iconic brand, and wants to see the industry “lift its game”.

AMP is adopting a “standardised advice process” so that there is consistency of advice from its advisers nationwide.

AMP has also invested in adviser productivity initiatives, and is changing the way it remunerates its distribution force.

It now pays adviser firms for sales, as opposed to the individual advisers.

Chote says this fits with the AMP theme of “Building better business.” The change means that the firms are better placed to recruit new advisers and grow their operations.

Also the company wants to remunerate advisers for business that is profitable and stays on the books.

As for the perception AMP advisers are tied agents, Chote says no way. There are no quotas or thresholds and the advisers can use products from other suppliers such as AXA, AIA and Tower.

AMP is also about to launch a revamped Savings & Investment Portfolio. Additional changes to advisor remuneration will also occur at the end of the second half of 2004.

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