The Federal Court of Australia has come down on the side of two advice practices in a class action contesting AMP’s decision to change the way it works with them.
The claim against AMP is in relation to the manner in which it changed the terms of its Buyer of Last Resort policy in 2019.
At the time, the AMP Financial Planners Association said AMP is contractually obliged to consult with it over changes it wants to make, and give its members 13 months’ notice of any change that will have a detrimental effect on them.
“AMP has done neither,” said the association’s CEO Neil MacDonald in August 2019.
In a statement following the ruling, AMP said it acknowledges the decision and is reviewing the judgment in detail to “…determine the full effect of the judgment and its next steps”.
“The Court has today ruled in favour of the claims of the lead applicant and sample group member,” states AMP.
The Court accepted evidence of the loss incurred by the two group members as a result of AMP’s policy change, being the lead applicant Equity Financial Planners ($813,560), and the sample group member Wealthstone ($115,533).
The Court determined amounts payable to the lead applicant and the sample group member only. Subject to any appeal, a process will be required to determine the impact of the decision on other group members.
See our report: TAA Supportive of Members in Class Action
