EXCLUSIVE The AMP Financial Planners Association has provided an update on its legal action against the embattled wealth manager.
Speaking to ifa, ampfpa CEO Neil Macdonald has indicated that he would be willing to negotiate with AMP over changes to buyer of last resort (BOLR) agreements.
The changes to the BOLR resulted in massive devaluation of client books that AMP advisers bought from the group using funds borrowed from AMP Bank. In the aftermath of the changes, advisers owe the bank between $400 and $500 million, with some facing the prospect of losing their livelihood and their homes.
But despite an impending class-action lawsuit against the wealth giant, Mr Macdonald still wants to talk it out.
“We’re still trying to get them to come to the table,” Mr Macdonald told ifa.
“We’re addressing all avenues. Our preferred position would be to get a negotiated outcome … and to have an outcome that is beneficial for all parties. That’s what we’ve done for 90-odd years in the association.”
However, Mr Macdonald confirmed that he has spoken to a number of funders who have expressed strong interest at ‘competitive terms’ and said that ampfpa is in the process of finalising the lawsuit.
As of yet, there has been no response from AMP.
“It’s forced our member’s hands because effectively they’ve gone from a position where they’ve had thirteen month’s notice period and borrowed money at four times and now told it’s worth a maximum two and a half, and possibly less than that because it’s grandfathered.”
Mr Macdonald also noted that impacted advisers have been in touch with their local members and the issue had been raised in NSW State Parliament.
“I think it’s unlikely that the government would intervene in this specifically but clearly the issue here is around small business owners being treated harshly by a major corporate,” he said.
AMP is also facing another class-action from Maurice Blackburn after revelations during the royal commissions that the bank overcharged superannuation customers.
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