AMP CEO says BOLR decision ethically, legally right
The boss of the wealth giant has defended the group’s decision to slash its buyer of last resort valuations, saying he “fundamentally” believes the group took the ethically and legally right course of action.
AMP chief executive Francesco De Ferrari fronted the House of Representatives standing committee on economics on Thursday, copping questions about its recent sexual harassment scandal and the group’s current recruitment of advisers to its network, after terminating multiple practices.
Committee chair and Liberal MP Tim Wilson, Liberal MP Celia Hammond and Labor MP Anne Aly all referred to emails they had received from AMP advisers, with a range of stories reporting on the impacts of the BOLR reforms.
AMP previously sold its financial planning books under the BOLR agreement for four times annual revenue, promising to buy them back for the same terms, before it cut the rate to 2.5 times annual revenue in August last year, as reported by sister brand ifa.
A collective of advisers from AMP Financial Planning filed a class action against the wealth giant in July over losses many were said to have suffered due to the policy change. AMP is defending against the claim.
Mr Wilson commented in the economics committee proceedings he had received accounts from a number of advisers in the group, saying AMP had broken its BOLR contracts, with “no compensation and the destruction [of] their businesses and lives”.
But AMP chief executive Francesco De Ferrari defended the group, saying he was confident AMP had fulfilled its consultation obligations and the BOLR changes had passed the bar, legally.
“Legal and what may be ethically right can be different things — do you believe what you’ve done is ethically right?” Mr Wilson asked.
