We are very aware that the changes to the BOLR Policy announced by AMP on 8 August 2019 have created considerable uncertainty for AMP financial planners. Those changes consist of reducing the 4x multiple of recurring revenue to 2.5x and also reducing and ultimately phasing out the multiple applicable to grandfathered commissions.
The members of the AMP Financial Planners Association are investigating the prospect of a class action against AMP arising out of the changes to the BOLR Policy.
Our firm is available to provide advice and representation to members of the AMP Financial Planners Association regarding their individual rights against AMP. This can include instigating mediation with AMP pursuant to the Master Terms and representing the member in such mediation.
In recent weeks we have been in dialogue with the AMP Financial Planners Association concerning the legal position of AMP planners who served their BOLR applications prior to 8 August 2019 but where completion of the purchase of their client registers is still to occur. We have a view on legal steps that such planners can potentially take to complete the sale of their register rights whilst seeking to preserve their rights to participate in any class action which may be commenced against AMP. It is not proposed that our firm would itself be involved in the class action.
We are also aware that AMP has been serving notices of termination upon a number of smaller AMP planners as part of its consolidation of the AMP adviser network. We are available to provide advice to such planners, including assistance in handling the sale of client registers either to another AMP planning firm or a financial planning firm outside the AMP network.
By way of background, we are a commercial law firm with offices in Melbourne and Sydney but are available to provide advice to AMP planners wherever they may be located within Australia. We have extensive experience over the last ten years in acting for AMP planners. This has included acting for AMP planners in sale or purchase of client registers and also in BOLR transactions with AMP. We have also acted directly for the AMP Financial Planners Association from time to time over the last five years.
If any members of the Association do need any advice or assistance please feel free to contact Michael Bishop or Andrew Cox of Pointon Partners for a confidential discussion.