Embattled wealth management giant AMP has started telling some of its more than 1500 aligned financial advisers that it is cancelling their licences, taking a tough stance in the wake of last year's inquiry into misconduct in the country's financial sector.

Alex Wade, AMP's head of wealth management, said in an internal email that it had become clear that some advisers were not going to meet new regulations imposed by the government to abolish commissions and increase compliance.

AMP has started slashing its network of aligned financial advisors as the fallout from the Hayne royal commission continues. Credit:Bloomberg

"We have identified a number of practices that won't make it through this transition because their business economics simply aren't strong enough," Mr Wade said in the email, dated August 29, viewed by Reuters and confirmed by an AMP spokeswoman.

"We have started communicating to those that will no longer be licensed by AMP in the future," he added. "This is a big change, but a necessary one."