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AMP CEO defends changes to AMP’s BOLR terms

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Sarah Kendell
13 August 2020 — 1 minute read

AMP chief executive Francesco De Ferrari has defended changes to AMP’s buyer of last resort terms and declining adviser numbers, saying “there are lots of challenges going through the industry”.

A number of current and former advisers recently filed a class action against AMP following its decision to reduce guaranteed values in its BOLR contracts from four times to 2.5 times revenue, as well as terminate 250 planners that were no longer profitable.

“This is among many of the challenging decisions we need to take,” Mr De Ferrari told sister brand ifa in response to a question on the matter. “The advice industry is disrupted. I think that is a fact.

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“We needed to readjust our commercial terms linked to BOLR because they were out of market. We have done this in line with what our responsibilities and commitments were, and so we feel strongly that our position is the right one, and we will defend it.”

Mr De Ferrari declined to comment further, citing legal proceedings.

He also defended AMP’s declining adviser numbers, with the wealth giant shedding some 270 advisers over the half.

A number of current and former advisers recently filed a class-action against AMP following its decision to reduce guaranteed values in its BOLR contracts from four times to 2.5 times revenue, as well as terminate 250 planners that were no longer profitable.

“This is amongst many of the challenging decisions we need to take,” Mr De Ferrari told sister title ifa in response to a question on the matter. “The advice industry is disrupted, I think that is a fact.

“We needed to readjust our commercial terms linked to BOLR because they were out of market. We have done this in line with what our responsibilities and commitments were and so we feel strongly that our position is the right one, and we will defend it.”

AMP CEO defends changes to AMP’s BOLR terms
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