The Advisers Association is disappointed that AMP Financial Planning has decided to appeal the judgment in the Federal Court, which ruled against AMP, in the Buyer of Last Resort class action proceedings.
In a short statement AMP confirms that it has filed a Notice of Appeal in relation to the judgment on the proceedings brought on behalf of advice practices authorised by AMP Financial Planning (see: Judge Rules Against AMP in BOLR Class Action).
AMP says the proceedings “…challenged the validity of some of the changes made by AMPFP to its Buyer of Last Resort policy in August 2019. As announced on 5 July 2023, the Court found in favour of the claims of the lead applicant and sample group member.”
AMP also notes the parties have also agreed to engage in mediation, which will take place in November 2023.
Extremely Disappointed
TAA says in July 2023, Justice Moshinsky ruled in favour of the class action’s lead applicant and sample group member, finding AMP had breached the terms of its Buyer of Last Resort policy when it “…cut the amount it would pay exiting AMP advisers for their businesses from four times recurring revenue to 2.5 times, and an even lower multiple for grandfathered commissions.”
TAA describes this as done “…arbitrarily, without proper consultation.”
The association says Justice Moshinsky also found “…that AMP’s treatment of the sample group member was, ‘in all the circumstances, unconscionable’.”
CEO Neil Macdonald says the association is “…extremely disappointed that AMP has chosen to appeal what was a conclusive judgement by Justice Moshinsky. We genuinely believe His Honour already took all the matters raised by AMP into consideration.”
However Macdonald welcomed that mediation on these matters has been scheduled for November and says “…in the interests of AMP, its shareholders, and past and current AMP-licensed members of TAA, the matter should be resolved as quickly as possible.”
He adds that it has already been “…a lengthy, expensive, and stressful process for all our impacted members.”
What do you expect. AMP has proven time and time again that ethics / morals / “the right thing” mean nothing to them.
These are almost my most favourite words in the industry ever said.
Time for less jobs with mates. Time for less collusion.
Time for us vs them. AMP isn’t your mate and you should sharpen your lawyers for negligence at minimum, defamation more likely. They have tarnished the life insurance brand – an umbrella you all sit under and earn income from.
What, you think I’m buying your products anytime soon? No, thanks to them. Multiply that by a larger percentage of the population… meanwhile you think health and wellness if your way out of this sh… show
Comments are closed.