Ampfpa prepared for class action against AMP

12 September 2019

AMP Financial Planners Association (ampfpa) members are stepping up action by contesting buyer of last resort (BOLR) changes announced by AMP and are holding it accountable for severe financial reputation and psychological harm.

The association said it surveyed member practices about AMP’s announcement that it was trying to right some wrongs of the past and 93% of respondents indicated they supported legal action.

Ampfpa chief executive, Neil Macdonald said, “AMP is on the record saying it is trying to right some of the wrongs of the past – it cannot right wrongs by doing the wrong thing by its own people”.

Related News:

Ampfpa noted that it had arranged legal packs outlining the available options for its members and was seeking additional information from them.

“We are aware that tier one legal firms are prepared to run a class action against AMP and funders are available at very competitive terms,” Macdonald said. “Our members intend to hold AMP accountable for the severe financial, reputational and psychological harm it is inflicting on its own advisers.”

Earlier this week, AMP announced it intended to cull its adviser network and slash the amount it would pay under its BOLR term to existing advisers from four times recurring revenue to a maximum of 2.5 times.

“This action was taken without consultation with ampfpa, without the required 13 months’ notice to advisers, and after AMP assurances that existing BOLR arrangements would not change,” Macdonald said.

Ampfpa said in May 2018 AMP Financial Planning’s then managing director met with AMP practices to reassure them that prevailing BOLR terms would remain the same.

“Based on this assurance, many practices may have made a decision to stay on with AMP last year, rather than exercising their BOLR rights,” he said.

The association noted it would prefer to consult with AMP to arrive at a fair outcome for their members, their members’ clients and AMP. Some members were actively contacting their local Members of Parliament and Small Business Ombudsman offices.

“In the meantime, AMP should pay the agreed BOLR multiples to those who have previously provided their notice,” Macdonald said.

Recommended for you




This is entirely necessary.
The actions of AMP are nothing short of an abuse and gross misuse of power.
Not only that, it clearly defines the rotten corporate culture of AMP in regard to it's loyal and supportive representatives and the manipulation it will impose on vulnerable businesses that have provided AMP with an income stream for many, many years.
It is a blatant example of the total disrespect this large corporate entity has for anything other than it's own survival following years of mismanagement.
Branding and slogans are simply smoke and mirrors.
When it comes down to the real AMP, it is a very different story.
I hope the class action proceeds and is highly successful in order to set a precedent that the treatment of individuals and businesses that have supported for decades cannot and must not be treated in this manner.

As a person who has been involved with AMP for over 40 years firstly with life insurance and subsequently with superannuation I am totally dismayed by the total lack of empathy towards their former financial planners. As a client of one of these effected planning groups I can only shake my head in disbelief at the people at the top who have not yet realized the full impact on each and every planner effected.
I also am not aware if they understand the impact this act has on the thousands of clients these planners had, the trust and report I had with my planning group has been broken. Understanding the full impact on their lives, the financial and emotional effect on their families can only be imagined. Of course not being fully compensated for the work they have done for both client and master is incomprehensible. And the final straw is the preclusion to work in the financial planning industry for 3 years seem a very harsh in the extreme, one assumes this is self preservation by AMP so as not to loose more clients. Unfortunately it will drive clients away taking their money with them.
I understand the legal requirement of employment (contract) with AMP would require the financial planner to sign and agree to these terms, but are not contracts a two way street. Were AMP bound by the terms of agreement to give 13 months warning to the said planners. If so in doing this (13 month warning) has not AMP breached its contract with the planners therefore if cannot enforce a no 3 year planning clause against them.
Because of the age of my investment setup and associated Centrelink benefits I may well have to stay with a now pre allocated investment group but trust me I am looking at further advice on ways to minimize my exposure to AMP product in the future.
Good luck with the class action in the future, full payment would be a good start and then of course the ability to satisfactorily exit your ongoing business commitments. To work in your chosen profession should be a given if you feel that you can trust the system again.

Add new comment