Australia's AMP said on Monday Blair Vernon will take over from Peter Fredricson as its chief financial officer and the wealth manager will dissolve its local wealth management arm in an attempt to simplify the organizational structure.

The move comes as assets under management at AMP's flagship Australian wealth management unit fell about 13% to A$124.2 billion ($84.24 billion) for the year ended Dec. 31, affected by the decline in investment markets, and net cash outflows of A$5.3 billion.

Fredricson, who joined AMP last year, will be retiring and handing over the ropes to Vernon, who has been with the company for more than a decade.

The company will also dissolve the CEO's role in its local wealth management arm, and as a result, the current chief Scott Hartley will be leaving the Australian wealth manager after six months.

($1 = 1.4743 Australian dollars)

(Reporting by Navya Mittal in Bengaluru; Editing by Muralikumar Anantharaman and Sherry Jacob-Phillips)