ASIC not looking into AMP BOLR issue


It is not in the "jurisdiction" of the corporate regulator to look into AMP’s strategy that would significantly reduce payouts from its buyer of last resort (BOLR) arrangements, the Australian Securities and Investments Commission (ASIC) has said.
Speaking at a Parliamentary Joint Committee today, ASIC chair, James Shipton said that the evidence surrounding the affected planners was a commercial dispute between the parties and it understood that the parties that were pursing this matter was to do with private rights or actions.
“There is no evidence it is within our jurisdiction and that’s where we view the matter,” Shipton said.
“…if there are further and better particulars on this matter than we would be very prepared to review that and amend our conclusion.”
The arrangements would see an exit of around 250 financial planners and when asked by Senator Deborah O’Neill on whether the exits and financial burdens it would place on the planners would be sufficient enough for ASIC to investigate, Shipton said that was a broader issue that the regulatory was aware of.
“We see the shifts commercially and environmentally in the industry and we are monitoring it because we are worried about unmet advice needs,” he said.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.