AMP shares lift on $100m settlement with financial advisors
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More news: Shares in AMP have surged 5.9% after the group settled a class action launched by financial advisors formerly operating under its banner for $100 million. AMP recently settled a separate shareholder class action for $110 million over value lost following a fees for no service scandal.
AMP reaches $100m settlement of financial advisers' class action
The news: AMP has reached an agreement to settle a class action brought by financial advisers over changes to its Buyer of Last Resort (BOLR) policy.
The numbers: The financial services company said the $100 million settlement covers the full class action, including where there has been no judgement. AMP had made a provision of $50 million in its first half 2023 financial statements, based on the Federal Court's judgement in favour of the financial advisers in July.
The context: The group of advisers filed a class action against AMP in 2020 over its decision to cut payments to the financial planners operating under the AMP brand for their client books. It was alleged that AMP’s plans to reduce the valuations did not comply with contractual terms under its BOLR policy, including giving 13 months notice. AMP says in reaching a settlement, the company makes no admission of liability.
What they said: AMP's CEO Alexis George said: "This is an important step forward for our Advice business and for AMP more broadly, as it allows us to put this legacy matter behind us, which has impacted relationships with our valued advisers.
"We’ve worked very hard in recent years on rebuilding the relationship with advisers and we’re looking forward to working with them in the delivery of quality financial advice, at a time when Australians need it more than ever."
The source: ASX announcement
