Some might argue that advisers who purchased client books from AMP at the inflated value of 4 times, did so with full awareness of the potential risks. But in many cases these sales were deliberately promoted by AMP to "career changers". New entrants to the industry who did not fully understand the risks or the value of what they were purchasing, and trusted AMP to do the right thing by them. People who used their homes as security to borrow from AMP Bank, to pay AMP the inflated purchase price.
AMP further exploited many of these people by selling them the "rubbish" clients, with out of date contact details or high likelihood of switching. Long standing "high value" practices had been allowed to selectively sell back their rubbish clients for 4 times, while retaining their best clients, even though this was contrary to the standard BOLR rules.
It would appear that many of the career change advisers who purchased client books from AMP may have been duped into unconscionable contracts.
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