Appearing at a Senate joint committee on Friday, Australian Small Business and Family Enterprise Ombudsman Bruce Billson was asked about the office’s role in the mediation.
“From our office’s point of view, we’ve conveyed the sense that they seem to have other priorities and we thought they should make this more of a priority,” Mr Billson said.
“We all know AMP has had a whole range of challenges to address and always respectful of that, but these authorised representatives have been the key to their customer-facing business for a long time and we were encouraging a higher elevation of priority and attention.
“We have met twice with the new Australian CEO in AMP (Scott Hartley) and communicated that very clearly and I think that message has been heard.
“We were suggesting that mediation process still left a number of those authorised representatives quite dissatisfied with where they’d landed and quite distressed about it.”
Deputy Dr Craig Latham confirmed that 116 financial advisers contacted the ombudsman and of that number, 66 were referred to mediation, 24 were resolved, 13 were not resolved, 24 withdrew and two were “partly resolved”.
A class action against AMP was launched last year, with more than 100 advisers estimated to be involved after being terminated by the company as part of a restructuring of its advice business in 2019.
“We’ve been in discussion about what can we do with the remaining cases,” Mr Billson said.
“There’s been some interplay between that mediated remedy and the class action.
“There’s been a range of judgements exercised in valuing the book for the buyer of last resort transactions. We’ve had examples shared with us where a comparatively recent purchase of a book from AMP, where the book quality was spruiked to be of top notch standard, but when it came to buy the book back, there [was] apparently some deficiencies with that very same book.”
The AMPFPA is a compromised organization.
How can they be managing the Class action on behalf of advisers and then suddenly cut off advisers who have sinc departed AMPFP but are part of the action.
The AMPFPA is a pathetic entity that repeatedly is intimidated by AMP and does not act in the best interests of the majority of AMP advisers
Regardless of how AMP have treated their advisers, other advisers should still be recommending AMP products if they are in their clients best interest.
Having researched their products, I came to the conclusion that none of their products will be recommended to my clients. Sorry AMP, but can’t see a great future for you now that you have bitten the hand that feeds you.
Here here
Regardless of AMP’s ethics and product quality, their service standards have totally dived in recent years. The rot started after the AXA merger, when they laid off lots of experienced staff in a desperate attempt to justify an “efficiency dividend”. Then with all the bad press surrounding the Royal Commission, many more experienced staff left of their own choosing. It has been extremely difficult to recruit and train appropriate replacements in such a climate.
Consequently AMP does not have anywhere near enough staff who actually understand their products and processes, and can provide a decent level of service to clients and advisers.
The majority of non aligned advisers realized decades ago that AMP products were only in the best interest of AMP and AMP financial planners. AMP North is reasonably priced but you have to deal with AMP customer service and I’d rather ring up Telstra or Centrelink or slam my hand in the car door first.
ASBFEO have done the best they can within its jurisdiction. Yes, they can not help advisers but they can bring AMP to account of the ill treatment of their planners. We need to support the ASBFEO and ensure they bring a parliamentary inquiry into AMPFP, given that the Ombudsman stated that AMP are making deals individually at their own discretion.
Very bad treatment by AMP but that was clearly telegraphed in the shocking contracts those advisers signed. Why work with such a company?
I approached the Ombudsman to participate in mediation. Cost of about $2k (from memory) and absolutely no chance of the other side being reasonable. It’s easier to just move on.
At one stage ASIC was talking about criminal charges and now they seem to have gone quite. In any case I cannot see how AMPFP is a good deal considering their treatment of advisers
ASIC have said they have other things to worry about. Most likely getting tax advice on someone moving from overseas.