The future of AMP

Good and well-thought-out comments here. AMP is exactly as Jim says it is. Like other iconic firms, such as Kodak and Fletcher Jones Clothing, they simply haven't moved with the times. This is fatal in the day of quick-change and innovation.

Wise words from from a man who knows. Only serious large scale change will save the big blue beast. Such change will need to come from outside the church.

I did 18 years as an adviser with this big group. It became so frustrating as a small country adviser, I gave up and moved away. I then saw how other institutions wanted to talk to me, help me grow a business with there products being available on a large APL. Its no wonder the share price is now under $5 after its heady float in 1999 of what, $15 or more..!

Jim, you said 'Percentages are at the heart of all conflicts'. Sorry but I don't agree. I think commissions are at the heart of all conflicts. Also, who sends monthly cheques to their advisers? Or any service provider for that matter. Everything is done by direct debit nowadays and whether it's worked out as a percentage based fee, or whether it's a flat fee, it gets paid. And if you provide a good service, and the client is opting in every two years, then there shouldn't be too many problems.

All these notions are easy to offer up but VERY difficult to implement without causing great harm.

You have old contracts between two parties, the insurer and the client. You have agreements like those offered or acquired by AMP who took on GIO, AXA and others. Then there are similar stories with Colonial, MLC and more. You also have self employed advisers that have borrowed funds to acquire their clients by using the client base or their home as the loan security, meaning that changing the valuation models will cause upheaval for thousands of families.

I happily accept that the corporate model needs a revamp (or perhaps a clean out) but the customers are not the only ones that will need to be compensated by the product providers for losses caused by such change. I also caution those that want to forget that this industry evolved based on laws and cultures of different times. It didn't just suddenly appear this way.

Slash and burn if you will, but have your cheque books ready for those whose jobs you terminate and whose families you harm. Oh...and none of this deals with the industry's biggest misrepresentation with undisclosed fees charged on products that outsource their work. In these cases only a net return is documented and the third party manager charges whatever it can without the need to disclose directly to the end user/consumer. This space is occupied by many different types of funds.

Remember that the same people who are here to fight for their clients are the ones you would target as though somehow it will solve every issue. To Jim, I say, financial literacy does not equal financial responsibility. Most people still want someone else to do this work, guide them through life and when it doesn't always work out... to take the blame.