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 flattens advice hierarchy with Hartley’s chief executive role ‘removed’
Scott Hartley’s stint as chief executive of AMP’s Australian Wealth Management (AWM) business will come to an end in six months after the nation’s second biggest advice group advised the ASX on a handful of changes it was making in its quest to simplify and streamline the business.
Hartley, who joined AMP from Sunsuper in January 2021, will help transition the AWM business to a flatter human resource model before leaving the group in late November.
“With the recent transactions largely complete,” AMP stated in its announcement, “a flatter organisational structure is appropriate.”
AMP is undergoing a vast simplification strategy, and has divested in the last 18 months its remaining interest in AMP Life, its global equities and fixed income business, the infrastructure debt platform and its international infrastructure equity business.
“As a result, the AWM business will be dissolved,” the notice stated. “Scott Hartley will work with the team to transition to a new operating model over the next six months, before departing AMP.”
Hartley (pictured) was the first of three major appointments at AMP in the last few years, as its executive spine was strengthened by the appointment of chief executive Alexis George in April 2021 and then managing director of advice Matt Lawler shortly afterwards.
His appointment came at a difficult time for the company, with AMP then wearing the brunt of the Hayne Royal Commission backlash for its role in charging clients fees for no service. Since, the group has shed what it saw as unprofitable advice practices and trimmed adviser numbers below 1,000, all the while dealing with an emotional legal stoush over its buyer-of-last-resort agreements.
In a further mark of its commitment to cut costs, AMP will also merge the roles of chief financial officer and group executive transformation. Following a 40-year career Peter Fredricson will leave the CFP post and retire, with Blair Vernon taking over the combined roles.
“Following the AMP Capital sales we are a much simpler business, and we need to reflect that in our leadership team and structure,” stated George. “I would like to thank Scott for the significant contribution he has made, as he has transformed the Australian wealth management businesses. He leaves those businesses in a much stronger position and has developed a solid leadership group to continue to take those businesses forward.
