AMP BOLR class action costs to wait
Members of the AMP buyer of last resort (BOLR) class action will have to wait longer for information on any potential compensation after an update from the Federal Court.
A verdict was handed down by Justice Mark Moshinsky on 5 July that the changes to the BOLR policy made by AMP with immediate effect were not authorised under the legislative, economic or product provisions and were ineffective.
Lead applicant Equity Financial Planners is entitled to damages in the sum of $813,560, while sample group member Wealthstone is entitled to damages in the sum of $115,533.51.
The parties are now in the process of determining the impact of other group members and how many practices have BOLR in their contracts.
Following the verdict, both AMP and the plaintiff Equity Financial Planners had to put in orders and a mention was raised in Federal Court on 25 August.
In a brief statement on 25 August, Justice Moshinsky stated that costs should be reserved, meaning no decision about costs will be made until the conclusion of the case.
AMP announced in its full-year results that it has set aside $50 million in provisions for the case, but many feel this is too low and the actual number should be at least double that figure.
The biggest shareholder class action settlement so far was for $200 million paid by Centro property group in 2012. The case centred around allegations of misleading and deceptive conduct that the firm had misled shareholders by failing to disclose billions of dollars in debt that was about to expire.
Speaking at the time, AMP chief executive Alexis George said the $50 million sum was AMP’s “best estimate of the judgment”.
She has also not ruled out AMP appealing the case.
AUTHOR
Laura Dew
Recommended for you
While the number of advisers switching tends to tick up at the end of the year, Padua Wealth Data reveals which business model sees the most adviser loyalty.
Private credit, auditor misconduct and super trustees have been listed among ASIC’s priorities as the regulator unveils its top focus points for the coming year.
Melbourne-based investment manager Woodbridge Capital has appointed an origination director for south-east Queensland, strengthening its foothold in the region as part of its national expansion strategy.
Barings has appointed a new head of Asia Pacific to succeed Duncan Robertson, who will retire after almost two decades with the firm.
Don’t costs reserved mean the legal costs are reserved to a later date? Are you confusing this with Damages?
Great result, but what about those of us that on exit had their books devalued by auditors that completed the exit audit of pre FOFA clients on Post FOFA rules?? not entirely fair there either.