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AMP axes Pearl DSF and plans retirement multi-tie

AMP is to slash 1,900 jobs at Pearl in a radical overhaul of distribution at its troubled UK operations.

It is axing the 1,000-strong Pearl direct salesforce, with the rest of the job losses to come from admin staff. AMP expects to save £160m next year from the move.

The firm will create a stand-alone salesforce of between 50 and 100 specialising in retirement planning which it plans to multi-tie using the Towry Law back office. It also plans a mortgage advisory service.

AMP Group chief executive Andrew Mohl warned of more changes to come. The job cuts come on top of a cull of 1,500 across its UK businesses announced in June.

Mohl ordered the review after revelations about Pearl&#39s weak solvency and the sudden departures of previous chief executive Paul Batchelor and UK managing director Tom Fraser.

Trade union Amicus joint general secretary Roger Lyons says: “The scale of the job losses has left the staff devastated and leads us and our members to fear the worst. Amicus officers are meeting with the company in an attempt to avoid compulsory redundancies and to ascertain the true extent of the difficulties.”

Mohl says: “We have taken tough decisions across the board, reshaping to do the basics really well. In the UK, we want to reduce our capital commitment by releasing capital from the mature business and develop a wealth management business that is capitalefficient and which plays to our strengths.”

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