$1.895m security sought within AMP adviser class action

The class action mounted by a group of financial advisers against AMP Limited is fast approaching its next stage, with Federal Court documents revealing a requirement for the payment of a $1,895 million security for costs.

The class action was mounted by AMP financial advisers against the company in 2020 over AMP’s alleged breach of buyer of last resort (BOLR) arrangements was initiated by current and former financial advisers via the Advisers Association.

The class action is based on allegations that AMP breached the underlying terms of the BOLR contracts by failing to consult with the advisers about changes to the arrangements it imposed.

The court documents state that the applicant provide security for the respondent’s costs in respect of mediation and trial in the amount of $1,895,000 two be paid in two tranches.

The documents also state that the applicant is to pay a sum of $76,000 into Court within 35 days with the sum being available to the respondent for the purpose of covering any enforcement costs of the deeds of indemnity.