AMP CEO expectant of BOLR class action update this month

amp amp financial planning Alexis George

10 August 2023
| By Laura Dew |
expand image

AMP believes the $50 million set aside for its buyer of last resort (BOLR) provision is its “best estimate” and expects to have an update within weeks. 

In its half-year results for the six months to 30 June 2023, the firm said it has set aside a provision of $50 million for the half year, reflecting a current assessment of the potential liabilities related to advice practices that were subject to the judgment. 

Speaking to Money Management, chief executive Alexis George said: “It has been an education for me on how this whole process works. The plaintiffs have to put in orders after the judgement which they did two weeks ago and then we put in our orders yesterday then the judge will look at both of those and will either decide hold another hearing or issue final orders and we expect that to complete this month.

“That will determine whether we appeal or not and we have a month to decide that and we still reserve that right to appeal.”

Asked whether she believed the judgement was too low, George said she felt it was AMP’s best estimate.

“I have heard so many different views on this but $50m is our best estimate of the judgment as we understand it today.”

The Federal Court issued a verdict on AMP buyer of last resort class action earlier this year, ruling against AMP Financial Planning.

Justice Mark Moshinsky ruled in favour of the class action group, finding that the changes made by AMP with immediate effect were not authorised under the legislative, economic or product (LEP) 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. There will be a further process to determine the impact on other group members. 

Read more about:


Submitted by Adviser on Thu, 2023-08-10 14:08


Submitted by Out of AMP!!! on Mon, 2023-08-14 11:31

Delusional is right! Fraudulent and misleading and the biggest case of corporate bullying to date! Next step ASIC investigation of AMP's bogus exit audit writedowns, if ASIC has the balls to follow it up....

Add new comment

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

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry



Old Fella

Of course a survey commissioned by an adviser coaching business would find that having an external business coach is a k...

13 hours 48 minutes ago
One foot out the door

A financial planner is expected to earn between $95,000 and $120,000 per year, depending on the state. Really? I don't...

23 hours 13 minutes ago

The whole thing is a bit frightening especially the last note where notes on what might be done could result in the need...

1 day 20 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

1 week 6 days ago

A former financial adviser has been banned by ASIC from providing financial services for inappropriate advice, among multiple breaches....

4 weeks ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

6 days 22 hours ago