The ampfpa surveyed its members following AMPFP attempts to make changes without notice to its buyer of last resort (BOLR) policy in August 2019 and found that a very high proportion was interested in pursuing legal action. The survey had a response rate of over 90 per cent, with more than 93 per cent of respondents indicating they support legal action.
Since receiving that response, ampfpa has been meeting with and interviewing various top tier law firms to identify the most suitable firm to nominate to act on behalf of members.
“After considering the options and meeting with and interviewing a number of tier one law firms, we believe Corrs meets the criteria our members wanted,” ampfpa CEO Neil Macdonald said.
Corrs is currently undertaking a range of investigations into the potential claims that may be available to ampfpa members, including a potential class action. Members wishing to explore their legal options via Corrs are being encouraged to register their interest with the firm.
Over 200 AMP advisers were sent termination letters by the group in August. They have until the end of the month to decide which avenue they will take to leave the company.
Meanwhile, AMP announced last week that its wealth business will merge with AMP Bank under the new AMP Australia banner, to be led by Alex Wade.
AMP chief executive Francesco De Ferrari said the internal consolidation reflected the company’s client-led strategy.
“The strategy we set out in August is focused on reinventing AMP to be a client-led, simpler and more growth-oriented business,” Mr De Ferrari said.
“Bringing together our bank and wealth management teams in Australia will drive a more integrated organisation better able to pursue the significant opportunity we see in providing more holistic wealth services for our clients.
“Closer integration of the businesses was part of our long-term plan, and with [AMP Bank CEO Sally Bruce’s] decision to step down we have been able to accelerate our internal re-organisation.”
ifa released a client experience report which formed the basis for the Client Experience Workshop which was recently run in Sydney, with another event will be held in Melbourne on 31 October. To register to attend, click here.
As an IFA I recommend ALL clients to switch away from AMP as they have proven not to honour their contracts.
The entire AMP group is a hot mess. Sadly, AMP will fight this to the bitter end and try to bankrupt their advisers in the interim. If they lose this will bankrupt AMP because all of the advisers will simply hand in their BOLR notices.
The AMP BOLR, was out dated ten years ago.
That said, a deal is a deal.
AMP needs to be honorable and pay 4!
If not, the class action should proceed, and the AMP will pay 4 and legal costs.
Yes it should have been a contingent liability, but I don’t think it was ???? I could be wrong
BoLR is not a liability to hold on your balance sheet…..how can it be when it is given in return for an asset. [quote=Anon]Did AMP ever have BOLR as a liability on it’s Balance Sheet? [/quote][quote=Anon]Did AMP ever have BOLR as a liability on it’s Balance Sheet? [/quote]
Anon. It would have been required to be recorded as a Contingent Liability, and no, that never really happened – at least adequately. The amount would have been a sizeable portion of the Equity account. Poor share holders. Never read the Financial Statements properly. The issue should come up in their Class Action.
I don’t believe the BOLR Obligations sits on the balance sheet, until a BOLR is paid out. I suspect AMP’s fear was that all BOLR would be handed in at mass, hence the change to the rate.
What is Ferrari’s definition of client led strategy or for that matter what is AMP’s strategy…? Does client led strategy mean remove all small adviser practices, steal their clients and leave them on your books as orphans and profit from the advisers grand fathered commission, sit on these clients for 3 years until robo advice is ready….that’s Client led strategy.
Did AMP ever have BOLR as a liability on it’s Balance Sheet?
Sue the bastards…