AMP's Strategic Partnership Announcement

AMP Limited (ASX: $AMP) has announced a strategic partnership and ownership structure with Entireti Limited and AZ Next Generation Advisory Limited (AZ NGA) for its AMP Advice business. The partnership aims to create a sustainable business model for AMP Advice, while simultaneously transforming the advice industry landscape in Australia.

Executive Commentary on Partnership

AMP CEO Alexis George expressed, 'AMP has been dedicated to creating a new model for our advice business to provide certainty for AMP advisers and our people. We believe this partnership achieves our goals and is the right strategic fit. Over the past three years we've made significant progress in transforming AMP Advice into a sustainable, standalone advice business. It was important in choosing these two partners that they had a strong track record, deep experience and shared AMP's commitment to delivering quality advice to more Australians.' Entireti Group CEO and Managing Director Neil Younger added, 'We are creating a formidable partnership and an icon of excellence in financial advice. We are excited to combine AMP's high-quality advisers with our contemporary business model and proven execution capability to deliver meaningful outcomes for clients.'

Summary of AMP's Strategic Partnership

AMP Limited (ASX: $AMP) has entered into a strategic partnership with Entireti Limited and AZ Next Generation Advisory Limited (AZ NGA) to establish a sustainable business model for its AMP Advice business. The partnership involves Entireti acquiring AMP's advice licensees and Jigsaw for $10.2 million, with AMP retaining a 30% stake, while AZ NGA will acquire AMP's minority stakes in 16 advice practices for $82.2 million. This move accelerates AMP's drive towards a sustainable Advice proposition and creates a large-scale services and licensee business for advisers. The partnership aims to provide future investment in modern requirements for advice practices and minimize disruption for advice practices. The transaction is expected to be completed by the end of the calendar year, subject to customary warranties and indemnities. The partnership signifies a significant step in transforming the advice industry landscape in Australia, offering a clear and sustainable path forward for AMP advisers.