Insights

Why the AMP (ASX:AMP) share price will be one to watch today

AMP is transforming its advice business…
The post Why the AMP (ASX:AMP) share price will be one to watch today appeared first on The Motley Fool Australia. –

The AMP Ltd (ASX: AMP) share price will be one to watch this morning.

This follows the release of an announcement revealing changes to its advice business model.

Why is the AMP share price on watch?

The AMP share price could be on the move today after it revealed a new contemporary advice service model.

According to the release, AMP is introducing a new service model with its aligned advice network, marking a new era for financial advice at the company.

AMP’s new model further prioritises its clients and will provide services to advisers which support the delivery of quality advice, improve practice efficiency, and help advisers grow their businesses.

Developed in collaboration with AMP adviser associations, the new model will be progressively introduced, giving advisers increased choice, flexibility, and transparency with how they partner with AMP and how they continue to operate their business.

Three key components

The contemporary approach includes three key components:

A new service proposition and fee model for advice practices, which has been competitively benchmarked against the industry and reflects the services offered. It includes a set of core services as well as user pay services. AMP intends to phase in the new fee model from 1 January 2022 to 1 January 2023.
The release of institutional ownership of clients from AMP Financial Planning to advisers, with the ability to transfer clients out of the AMP network. This change will take effect from 1 January 2022.
The conclusion of client register buy back arrangements from 31 December 2021, with practice principals able to take advantage of current terms remaining in place until this date.

Management commentary

AMP’s Managing Director of Advice, Matt Lawler, believes the changes are major step in the transformation of AMP’s advice business.

He said: “These changes represent a new value proposition to our financial advisers, one that is centred around us being a professional services provider to quality financial advice practices. Today’s announcement is another major step in the transformation of AMP’s advice business. It is a new era for financial advice at AMP.”

“Over the past few years we have worked with our financial adviser network to complete significant reforms, build robust and modern processes and are strengthening our compliance regime. With a lot of that hard work now embedded, it is the right time for AMP and our financial advisers to look to the future.”

“AMP is committed to the future of advice and building a stronger financial advice profession together. Importantly these changes recognise that the financial advisers should be in control of their business. It is their business, it is their clients and with our support we are determined to be working with our financial advisers long into the future,” he concluded.

The AMP share price is down 30% since the start of the year.

The post Why the AMP (ASX:AMP) share price will be one to watch today appeared first on The Motley Fool Australia.

Should you invest $1,000 in AMP right now?

Before you consider AMP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

The AMP (ASX: AMP) share price is trailing the ASX 200 by 60% over the past year
AMP (ASX:AMP) share price slides as ASIC ends criminal proceedings
Here’s why the AMP (ASX:AMP) share price is down 10% in the last month
AMP (ASX:AMP) share price struggles amid management fee cuts
It hasn’t been a great 2021 so far for the AMP (ASX:AMP) share price

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!