{"id":51389,"date":"2020-08-04T09:46:00","date_gmt":"2020-08-03T23:46:00","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=51389"},"modified":"2020-08-04T09:46:00","modified_gmt":"2020-08-03T23:46:00","slug":"taa-supportive-of-members-in-class-action","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2020\/08\/04\/taa-supportive-of-members-in-class-action\/","title":{"rendered":"TAA Supportive of Members in Class Action"},"content":{"rendered":"

The Advisers Association<\/a> (TAA), has issued a statement announcing that it’s supportive of its members, following the filing of an ‘open’ class action against AMP Financial Planning (AMPFP) on behalf of AMP financial planner members by Corrs Chambers Westgarth in the Federal Court of Australia.<\/p>\n

TAA\u2019s members are all all authorised representatives of AMP Financial Planning and Hillross Financial Services.<\/p>\n

TAA CEO, Neil Macdonald<\/strong>, says many members, both those exiting and those staying, have joined the class action, which follows AMPFP\u2019s decision to reduce its adviser network and cut the amount it would pay for their businesses under its Buyer of Last Resort (BOLR) terms, without notice, from four times recurring revenue to a maximum of 2.5 times.<\/p>\n

\"\"<\/a>
Neil Macdonald …TAA would have preferred, and continues to prefer, that AMPFP work with the association to negotiate fair and reasonable outcomes for all members…<\/figcaption><\/figure>\n

Macdonald says TAA would have preferred, and continues to prefer, that AMPFP work with the association to negotiate fair and reasonable outcomes for all members.<\/p>\n

\u201cThis is obviously imperative for those who are exiting, but it is just as important to those who are staying, so that they can continue to provide Australians with affordable access to financial advice.\u201d<\/p>\n

The statement says that the \u00a0Australian Small Business and Family Enterprise Ombudsman has referred more than \u00a060 BOLR-related cases for mediation, after receiving more than 100 complaints from AMP financial planners related to the BOLR changes. ALP Senator Deborah O\u2019Neill has called for a review of AMP\u2019s behaviour.<\/p>\n

(See: AMP Called On to Waive Adviser Debt<\/a>).<\/p>\n

Macdonald says that many members had bought businesses from AMPFP at four times recurring revenue, on the promise that AMPFP would acquire their businesses back on the same multiple when they leave, a key plank in AMPFP\u2019s ecosystem.<\/p>\n

\u201cThese are businesses that were valued by AMPFP for lending purposes at four times recurring revenue and in most cases were funded by AMP Bank loans or via another tripartite banking arrangement, again at four times recurring revenue,\u201d he says adding that in many cases advisers had to put up their family homes as security and are now at risk of losing them.<\/p>\n

\u201cMany of our members stated they had little choice but to join the class action,” he says.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Advisers Association (TAA), has issued a statement announcing that it’s supportive of its members, following the filing of an ‘open’ class action against AMP Financial Planning (AMPFP) on behalf of AMP financial planner members by Corrs Chambers Westgarth in the Federal Court of Australia. TAA\u2019s members are all all authorised representatives of AMP Financial […]<\/p>\n","protected":false},"author":24,"featured_media":51393,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,48],"tags":[],"class_list":{"0":"post-51389","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-associations","8":"category-company-news"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/51389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=51389"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/51389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/51393"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=51389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=51389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=51389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}