AMP BOLR victims see another delay to settlement
The AMP buyer of last resort (BOLR) proceedings have hit another delay after a case management hearing to approve the settlement was postponed.
A case management hearing to approve the $100 million settlement was scheduled to take place on 21 February, but the hearing was postponed.
Comments from both AMP and the Federal Court in Melbourne confirmed no new date has been set yet.
“The case management hearing has been vacated and chambers are awaiting consent orders from the parties regarding next steps,” the court said.
This is the second delay after the initial case management hearing on 22 December 2023, following the settlement decision that was vacated until this month.
Applicants had been requested to file any interlocutory application in relation to the settlement by 2 February.
It was announced in November 2023 that AMP had agreed to pay a settlement of $100 million, having announced in August that it would appeal the July verdict of Justice Mark Moshinsky and engage in mediation.
This was double the volume AMP had set aside in provisions in August and would address all aspects of the class action, including the proposed appeal.
In a statement to the ASX in November, the firm said: “The settlement is for a total of $100 million and is subject to the finalisation an execution of a deed of settlement and approval by the Federal Court of Australia.
“AMP made a provision of $50 million in its 1H23 financial statement based on the judgment of 5 July 2023.”
The class action was filed with the Federal Court in Melbourne back in 2020 on behalf of advisers who had been authorised by AMP Financial Planning (AMPFP). The claim related to changes made by the firm to its BOLR policy in 2019. This had seen AMPFP cut its BOLR terms without notice from 4x recurring revenue to a maximum of 2.5x.
The verdict on the class action was issued by Justice Moshinsky on 5 July, ruling that the changes made by AMP with immediate effect were not authorised under the legislative, economic or product provisions and “were ineffective”.
AUTHOR
Laura Dew
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