In a statement on Wednesday, AMP confirmed that AMP Financial Planning (AMPFP) has filed a notice of appeal in relation to the judgment in the Federal Court of Australia that found the wealth giant was not authorised to make immediate changes to its buyer of last resort scheme.
Following AMPFP announcing its intention to appeal Justice Mark Moshinsky’s ruling in a class action against AMP, the TAA said it is disappointed in the decision.
“We are extremely disappointed that AMP has chosen to appeal what was a conclusive judgement by Justice Moshinsky. We genuinely believe His Honour already took all the matters raised by AMP into consideration,” said TAA chief executive Neil Macdonald.
Mr Macdonald did, however, welcome the opportunity for mediation, which has been scheduled for November. He added that it is in the interests of AMP, its shareholders, and past and current AMP-licensed members of TAA, to have the matter resolved as quickly as possible.
“It has already been a lengthy, expensive, and stressful process for all our impacted members,” he said.
In July 2023, Justice Moshinsky ruled in favour of the class action’s group, in relation to the wealth giant’s controversial decision to change its Buyer of Last Resort (BOLR) scheme, finding that the changes made by AMP with immediate effect were not authorised under the legislative, economic or product (LEP) provisions and “were ineffective”.
Justice Moshinsky also found that AMP’s treatment of the sample group member was, “in all the circumstances, unconscionable”.
At the time, AMP said in a filing to the ASX that it would provide an update in due course, and on Wednesday, the wealth giant confirmed it has filed a notice of appeal.
Commenting on the latest development, AMP’s group executive, advice, Matt Lawler said: “While we believe we have grounds on which to appeal, we also recognise the ongoing impact the proceedings are having on practices, with whom we’ve worked hard to rebuild strong and trusted relationships.
“We value these relationships and that’s why we are fully committed to the upcoming mediation process in November 2023, with the aim of reaching agreement on an outcome that allows us to put this behind us.”
Back in 2020, following the class action being filed, a spokesperson for AMP told ifa the group was confident changes made to the BOLR contracts had followed the letter of the law as well as being “in the long-term interests of our clients and advisers”.
“The financial advice industry has transformed dramatically in the past few years, including the removal of grandfathered commissions, new mandatory education standards and higher advice standards,” the spokesperson said.
“AMP has made difficult but necessary decisions to ensure we adapt to the new environment and continue to have a strong, viable advice business for clients,” the spokesperson added. “We recognise the changes are challenging for many in our adviser network, and we’re providing support to our advisers to help them manage the transition, including those who support the class action.”
