AMP considers option after BOLR class action loss

Mike Taylor

Managing Editor and Publisher

5 July 2023

AMP Limited has lost its key Buyer of Last Resort class action.

The Victorian federal court has ruled in favour of the AMP financial planners who pursued the class action which was based on claims that AMP had breached its contractual obligations by reducing the earnings multiple sitting behind the BOLR.

AMP had entered a trading halt ahead of the Federal Court decision. The company must now decide on whether it will pursue an appeal.

In a statement issued, later, AMP said that it acknowledgted the decision which had challenged the validity of some of the changes made by AMP Financial Planning to its BOLR policy in August, 2019.

“The Court accepted evidence of the loss incurred by the two group members, being the lead applicant (Equity Financial Planners – $813,560) and the sample group member (Wealthstone – $115,533),” AMP said.

“The Court determined amounts payable to the lead applicant and the sample group member only. Subject to any appeal, a process will be required to determine the impact of the decision on other group members. Noting the complexity of the matter, AMP is reviewing the judgment in detail to determine the full effect of the judgment and its next steps. AMP will provide an update in due course.”

The class action decision represents a substantial victory for the AMP advisers who backed action against the company