AMP chief executive Craig Meller has laid out the company's plans to cross sell to the 15,000 SMSF trustees who now use AMP as their administrator.
Speaking at AMP’s annual results announcement in Sydney last week, Mr Meller said there is “good money for [AMP] to make out of [SMSF] administration”.
AMP will also be looking to provide the trustees of the SMSFs it administers with “other products and services from AMP”, he said.
“We see [AMP SMSF] delivering administration profits to AMP in its own right, but also further profits to AMP through the other products and services that we can provide to SMSF trustees,” he said.
“An example of that is on the banking side where we now have mortgages and deposits totalling more than $200 million provided through those SMSF platforms,” said Mr Meller.
AMP has grown the number of SMSFs it administrates from 9,100 in December 2012 to 14,835 in December 2013 via both organic growth and acquisition.
“That’s getting towards four per cent of the total market, and absolutely the lion’s share of the automated administration market,” said Mr Meller.
“It’s going to be a scale play, and we intend to continue to grow our share,” he said.
AMP SMSF includes all the accounts for Cavendish, Multiport, Ascend, YourSMSF and SuperIQ (in which AMP has a 49 per cent ownership stake).
Asked about future acquisition plans, Mr Meller said there were no deals “on the table” – but “if any further other opportunities come our way in that area we’d certainly consider them”.
AMP’s SMSF Advice business recruited an additional 40 advisers over 2013, up from 17 in December 2012 to 57 in December 2013.
An AMP statement attributed the “strong recruitment activity” to the requirement under FOFA that accountants providing SMSF financial advice either obtain a licence or become an authorised representative during the July 2013 to July 2016 transitional period.
Total financial advisers at AMP grew by 140 over 2013, up from 4,276 in December 2012 to 4,406 in December 2013.
“AMP is now focused on broadening distribution reach, developing advice capabilities and developing quality investment products tailored for the SMSF market,” AMP said in a statement.
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