Money Management understands there are around 90 objections to the AMP buyer of last resort (BOLR) class action, with a settlement hearing due to take place on 29–30 August.
A report has been submitted to the contradictor who will then go through all the objections raised in conjunction with the original court ruling to determine which have legal grounds, then present a summary to the court.
The court will then determine whether to accept, reject, or amend aspects of the settlement offer on behalf of the scheme members.
Given the hearing is being held over two days, members questioned whether this means the judge will allow certain objections to be held in person.
Class action member David Haseldine said: “The assumption is that given the judge has set the hearing to be heard over two days, he is planning on hearing from quite a number of us. Apart from anything else, it’s likely to be the only opportunity many of us had to be heard and for a great many to be heard without fear of AMP invoking some of their unconscionable contract terms.
“Personally, I know this settlement is a complete sham, and if there is any justice, it won’t take the judge long to throw the settlement out.”
AMP announced last November that the settlement offer is for $100 million, double what the firm had made a provision for in its H1 2023 financial statement. It had previously stated it believed $50 million reflected a current assessment of the potential liabilities related to the advice practices that were the subject of the judgment.
While the announcement was viewed as helping class action members “reach closure”, others indicated they would still challenge the decision.
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 Mark 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”.
Last week, AMP announced it has sold its advice division of AMPFP, Charter and Hillross to Entireti and sold its minority stake in 16 advice practices to AZ NGA.
AMP continues to sell of the business piece by piece, a once great Australian institution is now a pile of rubble and even with the proceeds from the sale of multiple sections of the business, they still refuse to acknowledge and pay out their advisers for the illegal change of the BOLR contract. Let’s hope that the law and courts continue to recognize AMP’s actions and make them fully accountable for their actions.
Dear Laura
I want to commend you for your courage in addressing the ongoing saga of the financial planners’ class action against AMP, even as it enters its fourth year. Your article is a breath of fresh air and brings much-needed attention to an issue that has profoundly affected many of us in the industry.
It is particularly gratifying to see someone in your position willing to shed light on what has been a deeply unjust process for countless financial planners who have been robbed of their life’s work, savings, and retirement funds. The settlement offer put forward by AMP is nothing short of a travesty—unfair, unbalanced, and designed to benefit AMP at the expense of those who have already suffered so much.
The fact that many planners have rejected this offer speaks volumes about the depth of the injustice we have endured. It is not merely a matter of financial recompense; it is about holding AMP accountable for the significant and irreparable harm they have caused to professionals who dedicated their lives to this industry.
Your willingness to write about this, despite the passage of time, is both admirable and essential. It serves as a reminder that the fight for justice is far from over and that the voices of those wronged must continue to be heard.
Thank you for your bravery and for shining a light on a matter that deserves much more attention.
Best regards
Vadim Valev
The whole settlement offer is a joke! Not only are we missing out on part two of the judgment, damages for AMP‘s atrocious unconscionable conduct, but this settlement offer effectively pays advisers in the strongest position only around one quarter of what the court judgment ruled in July 2023. Face it AMP, you’re not dealing with idiots. Just pay us what we’re entitled to including damages for all of the pain and suffering we have had to endure at your hands. If you want this to go away quickly, you need to start acting ethically!