AMP advisers have won the backing of the Federal Opposition which is now calling for an inquiry into AMP’s handling of buyer of last resort arrangements (BOLR) arrangements.
In an article to be published in the upcoming print edition of Money Management, Labor Senator Deb O’Neill has written harsh critique of AMP’s handling of the BOLR issue stating: “These AMP agents were the face of AMP across Australia, they thought they had safe contractual arrangements with ‘their’ company, but while they were selling AMP, AMP sold them out”.
“How motivated are our biggest financial service providers to do the ‘right’ thing by their own? Not so motivated to that end it would seem,” she wrote.
“Trust is an essential ingredient in any successful business. It is even more so in the financial services sector, where Australian’s entrust their life savings and financial future to largely unknown individuals based on their faith in the financial sector and its regulators. Decisions like the BOLR changes only undercut the narrative that we all hope for post-Hayne. We are in desperate need of a culturally changed, more ethical industry.”
O’Neill expressed her disappointment that Government members of the Parliamentary Joint Committee on Financial Services had voted against holding an inquiry into the BOLR changes.
“They chose to protect the powerful AMP and leave the lingering traumatised advisers to the mercies of a long court battle. If AMP can work with government to evade any serious, sustained scrutiny of their unconscionable behaviour, that sends a signal to the rest of the sector to take their chances. Profit at any price is not commerce. It is exploitation,” she wrote.
“Labor believes in an economy that works for all Australians. That is why I, and my colleagues, have championed a Parliamentary inquiry into AMP’s decision regarding its BOLR changes. We want to ensure that those Australians who feel that they have been “done over by the system” can have their say before their elected representatives, and most importantly get back on their feet so they can run a successful business.”
“A Parliamentary Inquiry into AMP’s BOLR changes will serve as a reminder to all financial services providers will be put on notice that they cannot quietly backslide into old, bad habits. We need to ensure that justice is provided to victims of toxic corporate decisions and that in Australia, the land of the fair go, the small businesses that power our economy will never be easy prey.”
