Advice practices urged to contact ombudsman

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell is calling on small business financial advice practices to share their experiences.

Carnell wants to hear from those small and family enterprises being pushed out by financial advice licensees.

Recent news about changes to AMP's Buyer of Last Resort agreements and a class action mounted against AMP Financial Planning appear to have gotten the attention of the ombudsman.

"Following recent media reports regarding AMP Financial Planning's restructure of its business, my office has received dozens of requests for assistance from small business financial planners across a number of licensors, many of whom say they are facing financial ruin," Carnell said.

"Small business owners are reporting that they are bearing the brunt of brutal restructures by their licensors..

"They are saying that licensors' handling of matters has not been transparent or equitable."

The Ombudsman was clear in saying it wants to hear from any financial adviser who feels that their treatment is unfair.

"We're concerned about a number of behaviours that may include the conduct of lookback audits, financial planning licensors shifting responsibility for client compensation payments to licensees, short notice periods provided to licensees exiting the business and restraint of trade provisions," Carnell said.

Those seeking to contact the Ombudsman can do so through email or by submitting an online form.

Read more: AdviceFamily Enterprise Ombudsman Kate CarnellAMP Financial PlanningAustralian Small BusinessBuyer of Last Resort
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