AMP BOLR victims see another delay to settlement

22 February 2024
| By Laura Dew |
expand image

The AMP buyer of last resort (BOLR) proceedings have hit another delay after a case management hearing to approve the settlement was postponed. 

A case management hearing to approve the $100 million settlement was scheduled to take place on 21 February, but the hearing was postponed. 

Comments from both AMP and the Federal Court in Melbourne confirmed no new date has been set yet.

“The case management hearing has been vacated and chambers are awaiting consent orders from the parties regarding next steps,” the court said.

This is the second delay after the initial case management hearing on 22 December 2023, following the settlement decision that was vacated until this month.

Applicants had been requested to file any interlocutory application in relation to the settlement by 2 February. 

It was announced in November 2023 that AMP had agreed to pay a settlement of $100 million, having announced in August that it would appeal the July verdict of Justice Mark Moshinsky and engage in mediation. 

This was double the volume AMP had set aside in provisions in August and would address all aspects of the class action, including the proposed appeal.

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. 

“AMP made a provision of $50 million in its 1H23 financial statement based on the judgment of 5 July 2023.”

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 provisions and “were ineffective”.



Read more about:


Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you



sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry


My view is that after 2026 there will be quite a bit less than 10,000 'advisers' (investment advisers) and less than 100...

3 days 22 hours ago
Jason Warlond

Dugald makes a great point that not everyone's definition of green is the same and gives a good example. Funds have bee...

3 days 23 hours ago
Jasmin Jakupovic

How did they get the AFSL in the first place? Given the green light by ASIC. This is terrible example of ASIC's incompet...

4 days 22 hours ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

9 months 1 week ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

8 months 4 weeks ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

9 months 1 week ago