AMP will reduce the headcount across its superannuation and North platform businesses and press ahead with changes to its redundancy policies even as the Finance Sector Union warns that “staff deserve better”.
The three-way tie-up highlights just how much the power dynamic has shifted across the advice landscape over the last decade, with advice ownership groups arguably superceding licensees in the pecking order.
By reneging on long-standing employment deals, AMP has again given the impression that it has welched on an existing agreement once it realised the deal wouldn’t work out in its favour. Do that repeatedly and people stop wanting to do business with you.
AMP has cut redundancy pay maximums and notice periods in a move that has left long-term employees dismayed after they stuck with the company through the royal commission and its aftermath.
Advisers won the case against a well-armed opponent and can move on with more financial parity, while AMP’s shareholders and executives can put a long-overdue cap on the damage caused by this at-times acrimonious dispute.
AMP’s executive spine has done a remarkable job of arresting the company’s decline, but its refusal to accept the court’s decision that it shortchanged advisers on BOLR deals is an egregious misstep that could put its trust account with those advisers back in the red.
Brokerages raising their target price on Nvidia shares this month have pushed the median view to US$500, and analysts say that may be conservative. After an impressive earnings report, hedge funds and others are piling into the chip maker even as high bond yields threaten tech stocks.
Recently released wages data increases the likelihood the RBA will pause its rate hiking campaign for the near term, economists say. A soft landing for the economy is far from guaranteed, but the runway is getting clearer.
The Financial Services Council commissioned the Retirement Income Policy Roadmap to help the superannuation system put greater emphasis on the drawdown phase. Industry leaders say the biggest hurdle is a deeply entrenched fear of running out of money.
Corporate profit growth is expected to moderate, especially in sectors focused on consumer sales, and mining companies have seen large downgrades. Meanwhile, markets are still not fully pricing in the high risk of recession, some analysts say.
The judge was satisfied that Equity suffered “loss and damage” as a result of AMPFP’s breach of contract, while the language used for the licensee’s treatment of Wealthstone was even stronger. AMP acknowledged the result, and did not rule out an appeal.
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.
AMP recently promoted senior economist Diana Mousina to a new role, deputy chief economist, in recognition of her achievements and succession path. Like other economists, Mousina sees a recession on the cards for Australia, although the timeline may be longer than many hope.
Despite increased volatility emanating from the banking sector, tech stocks have been supported by falling bond yields on fears the global economy could slip into recession this year, with big-name companies leading the gains.
While avoiding recession is possible, the continuation of restrictive macroeconomic policies for the near term is needed to fight inflation, according to the IMF’s annual economic report card for Australia – and tax reform and stronger housing policies would also help.
Credit and equity markets both suffered a very bad 2022, as the collapse of negative correlation between stock and bond prices left no safe haven for investors. But 2023 could be a big year for bonds, with analysts warning investors waiting on the sidelines that they risk missing out.
Housing conditions are tipped to remain soft in the year ahead as central banks continue to raise credit costs, but experts still believe an all-out property market crash is unlikely.
Higher rates and the cost of living, on top of global events, have contributed to increased Fear Of Running Out across the country. Yet the level of concern may be relatively unfounded, AMP reports.
As interest rates creep north, advisers extoll the virtue of investing away from the family home and into a diversified suite of assets.
The institutional provider’s AUM and profit lines stayed red in 1H22, but positive signs emerged.
