ASIC puts BOLR on backburner

In correspondence seen by ifa, senator Deborah O’Neill has revealed that ASIC does not consider an investigation into BOLR changes to be a priority and requested a government inquiry into the matter.

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by Lachlan Maddock - July 15, 2020 26 comments

Senator Deborah O’Neill has previously called for an ASIC investigation into AMP’s changes to its buyer of last resort agreements after it “drastically devalued” the business of a number of AMP advisers.

But ASIC has apparently put the issue on the backburner.

“In response to my letter requesting they investigate this issue, ASIC has confirmed it does not consider this matter to be a priority for them,” Ms O’Neill wrote in a letter to senator James Paterson, chair of the joint committee on corporations and financial services .

“Considering this decision, I now call on this committee to ensure for proper scrutiny of these matters for these hundreds of small businesses.”

The Australian Small Business and Family Enterprise Ombudsman has highlighted a number of issues related to AMP, including reduction in BOLR value, BOLR audit outcomes, AMP Bank and negative equity, non-competing clauses, and changes to grandfathered remuneration.