Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
AMP continues ‘simplification’ push with super, North restructure
AMP will launch a restructure of its superannuation and North platform businesses in the latest of a series of efforts to simplify its operating model and turn itself – and its share price – around.
The restructure comes amidst changes to redundancy benefits for long-serving employees set to take effect in early 2025.
“As part of the ongoing simplification of our business we are continuing to refine our operating structure,” an AMP spokesperson told ISN, while declining to comment on how many roles would be impacted.
The cuts further complicate AMP’s increasingly acrimonious relationship with its own employees and the Finance Sector Union (FSU), which has separately been campaigning for AMP to come to the table on a new enterprise agreement.
“These are just the latest in a series of cuts at AMP, leaving staff, customers and the market in the dark about their strategic direction. Can anyone trust them?” Nicole McPherson, assistant national secretary of the FSU, said in a statement.
“AMP are refusing to bargain for a new enterprise agreement with their staff, so when they keep cutting jobs staff have no say in their entitlements and no certainty. This is both disrespectful and shameful behaviour from what was an Australian icon in financial services. Staff at AMP deserve better.”
AMP has been on a ‘simplification’ spree as it attempts to reanimate its share price and reduce complexity in a business that, over its 175-year history, has sprawled into dozens of financial services sectors. That’s seen it offload its asset management arm, AMP Capital, and almost completely exit advice through the sale of its AMP Financial Planning, Hillross and Charter licensees, as well as it licensees service provider Jigsaw, to Entireti, and the sale of minority stakes in 16 advice practices to AZ NGA. It’s also restructured its banking division as it looks to build out a digital-only offering targeted at small businesses and personal banking customers.
The restructure in its superannuation and platforms businesses follows controversial changes to redundancy pay maximums and notice periods announced in June. Under the new policy, the minimum notice period will change from eight weeks to six; the age supplement for staff over the age of 45 will be cut from a maximum 10 weeks of pay to a maximum of one week; maximum redundancy pay will be changed from 104 weeks to 52 weeks, “significantly higher than the BFI Award maximum of 16 weeks”; and for those at “job levels 11” and above, a 26-week maximum redundancy pay will continue to apply for AMP executives.
Those changes were met with uproar from staff, who took to internal channels to express their dissatisfaction, accusing AMP of putting the interests of shareholders ahead of its own employees. While ISN had heard rumblings that some of those changes might be walked back in the face of stiff employee opposition, AMP confirmed that it would press ahead.
“At AMP we have a compelling Employee Value Proposition that includes a package of benefits to help us attract, reward and retain the best people for our company,” an AMP spokesperson said.
“AMP’s redundancy policy was due to be reviewed, having been in place since 2000. The new policy… aligns our approach to redundancy with the contemporary practices of our financial industry peers. These new redundancy entitlements remain significantly more generous than the statutory requirement (as outlined in the National Employment Standards).”
