The case management hearing for AMP’s buyer of last resort (BOLR) proceedings to approve the settlement sum has been given a rescheduled date after two prior cancellations.
It was announced last November that AMP would pay victims of the BOLR class action some $100 million following a verdict by Justice Mark Moshinsky in July 2023. This was double what the firm had made a provision for in its H1 2023 financial statement and followed mediation by the parties.
In a statement to the ASX in November, the firm said: “The settlement is for a total of $100 million and is subject to the finalisation an execution of a deed of settlement and approval by the Federal Court of Australia.”
This now needs to be approved by the Federal Court. Originally scheduled to take place on 22 December, it was postponed to 21 February and then delayed for a second time.
The Federal Court has now announced it is rescheduled to take place on 21 March, some four months after AMP first announced the settlement sum.
The parties will also need to decide what the sum means for each of the individuals in the class action and how it will be divided up.
The class action was filed with the Federal Court in Melbourne back in 2020 on behalf of advisers who had been authorised by AMP Financial Planning (AMPFP). The claim related to changes made by the firm to its BOLR policy in 2019. This had seen AMPFP cut its BOLR terms without notice from 4x recurring revenue to a maximum of 2.5x.
The verdict on the class action was issued by Justice Moshinsky on 5 July, ruling that the changes made by AMP with immediate effect were not authorised under the legislative, economic or product (LEP) provisions and “were ineffective”.
Announcing the settlement sum, Alexis George, AMP CEO, said: “This is an important step for our advice business and for AMP more broadly as it allows us to put this legacy matter behind us, which has impacted relationships with our valued advisers.”
