AMP's new wealth strategy leaves advisers in debt

Pedro Gonçalves
clock • 3 min read

Australia's AMP is reinventing its wealth management division with a strategy that includes a significant reduction in what it will pay retiring advisers, or those who wish to exit the industry, to buy back their client books under its buyer of last resort (BOLR) program. The new scheme will see AMP pay advisers a multiple of 2.5 times the earnings from their clients to buy their businesses, down from 4 times earnings under the current scheme. "We are all running businesses. As the CEO of a public company I would find it difficult to explain to shareholders how to justify buying somet...

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