The Advisers Association (TAA) is disappointed that AMP Financial Planning (AMP) has decided to appeal Justice Mark Moshinsky’s ruling in a class action against AMP, filed by Corrs Chambers Westgarth in the Federal Court of Australia (the Court) on behalf of TAA members licensed by AMP Financial Planning.
In July 2023, Justice Moshinsky ruled in favour of the class action’s lead applicant and sample group member, finding AMP had breached the terms of its Buyer of Last Resort (BOLR) policy when it arbitrarily, without proper consultation, cut the amount it would pay exiting AMP advisers for their businesses from 4 times recurring revenue to 2.5 times, and an even lower multiple for grandfathered commissions.
Justice Moshinsky also found that AMP’s treatment of the sample group member was, ‘in all the circumstances, unconscionable’.
TAA CEO Neil Macdonald says, ‘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.’
However, Mr Macdonald welcomed that mediation on these matters has been scheduled for November and says that in the interests of AMP, its shareholders, and past and current AMP-licensed members of TAA, the matter should be resolved as quickly as possible.
‘It has already been a lengthy, expensive, and stressful process for all our impacted members,’ he says.