AMP NZ head, Blair Vernon, has picked up the new role of chief transformation officer at the under-repair ASX-listed business.
Vernon retains his NZ chief executive title following the change while Jeff Ruscoe takes on day-to-day responsibilities as managing director for the local operation.
Ruscoe, most recently chief client officer, filled in briefly as NZ head in 2020 as Vernon was seconded to head AMP Australia after the shock exit of Alex Wade.
According to an AMP NZ spokesperson, in his new capacity Vernon would be leading “the extensive transformation and simplification programme underway across the AMP Group given recent transactions announced”, reporting to chief, Alexis George.
Meanwhile, Ruscoe will report to Vernon “from an AMP Group perspective, albeit the NZ wealth management business now runs on a largely standalone basis given changes in recent years”.
AMP NZ manages about $11 billion, mostly through its KiwiSaver and superannuation products, and owns the AdviceFirst advisory firm. In 2020 the NZ group outsourced the bulk of investment management to US behemoth, BlackRock.
But the NZ executive reshuffle is a sideshow to the AMP main event as George attempts to breathe life back into the much-reduced organisation.
Early in May the group confirmed its drawn-out exit from asset management, inking deals to sell the final pieces of the business formerly known as AMP Capital.
AMP stands to net over A$2 billion from the total asset management sales (with the final deals due to close later this year).
George told shareholders at the group’s May 20 annual general meeting that AMP would refocus efforts on its Australian bank and wealth management operations on both sides of the Tasman.
While parts of the AMP Australian wealth management are profitable – notably the North investment platform – she said the once-dominant financial advice network “has been running at a substantial loss in recent years and is projected to do so in 2022” due to tough “regulatory settings”.
“We are accelerating the transformation of advice by implementing a contemporary services model, embracing technology and ensuring the services provided are appropriately priced,” George said.
She said AMP would also look to maintain “good customer outcomes and providing stable earnings” for the NZ wealth division, which reported steady profits of about A$39 million last year.
Rolling out the new AMP ‘Helping people create their tomorrow’ slogan at the AGM, George also gave a nod to the past.
“We need to remove bureaucracy, become more agile, make brave decisions and learn from our mistakes,” George told the AGM. “We also need to ensure that the portfolio is constantly reviewed and serving the new purpose and company direction.”
Despite expecting a huge influx of new capital from the asset management sales, George hosed down shareholder hopes for a restart to dividend payments at the AGM.
Instead, she said AMP would pay down some debt and embark on share buybacks while keeping “a robust capital management approach” as insurance during the current volatile period.
“Today we are not in a position to resume the payment of dividends to our shareholders,” George said.
Maybe tomorrow.