The Shift in Institutional Ownership

The financial advice sector is undergoing significant changes, with major institutions like AMP planning to divest from their licensee businesses, following a trend initiated by banks in the wake of the Royal Commission. This movement marks a notable shift in how financial advice will be delivered, as advisors seek greater independence from product manufacturers. AMP's decision, influenced by a three-year plan, involves deep consultation with advisors to ensure a smoother transition that prioritizes fiduciary responsibility and builds trust with clients. The goal of this structural change is to foster a more standalone, client-focused advice model, separate from institutional affiliations.