AXA Wealth has announced plans to transform its distribution and adviser support divisions into a wealth management business using a tailored consultancy model.
The new model is the firm's response to the regulatory impact of the Retail Distribution Review (RDR), and is aimed at creating opportunities for AXA Wealth and advisers across different distribution models, particularly in restricted and whole-of-market advice on pensions and investment products.
The structural changes, said David Thompson, MD marketing and distribution, are a response to the significant growth in new business over recent years, with Elevate now providing services to over 100,000 clients managed via 1,000 registered intermediaries, and assets at record highs on both AXA Wealth's platform and its specialist investment arm, Architas. As reported by SRP.com, AXA Wealth's Architas funds, which include the firm's capital-protected range, Architas Diversified Protector funds, saw inflows in December 2011 rocketing to four times higher than in January 2011.
"Our focused approach will mean we can offer real hands-on and specialist support in the areas that advisers say they need it most, whilst targeting effort at identifying new firms with an investment and partnership philosophy similar to our own," said Thompson. "The changes signify a significant shift in how we partner with our advisers, which I believe will help ensure AXA Wealth and its customers maximise the opportunities brought about by RDR and the new market environment."
AXA Wealth, which includes AXA's Elevate wrap, plans to divide its adviser clients into four separate divisions with one team specifically to work on the company's large corporate relationships with national IFA networks, such as Sesame and Paradigm; a second segment consisting of IFA firms that already use Elevate but with which AXA wants to have a closer relationship; a third segment aimed at specialist adviser firms, which conduct a lot of offshore business; and a fourth segment will be dedicated to new business.
A spokesman for AXA Wealth said a number of roles will be lost as part of the restructuring of the business with a reduction of regional managers from ten to five, and a further 50 roles put at risk out of the overall 300 in the distribution support team.