AMP and the AMP Financial Planners Association have commented on the decision to extend the October 31 deadline originally given to financial advisers given notice by the wealth giant. Meanwhile, the AMPFPA has confirmed action against AMP will likely be filed before year end.
Following on from AMP's decision earlier this year to restructure its advice business and slash Buyer of Last Resort (BOLR) multiples, financial advisers who were given their notice by the institution have been given an additional month to consider their options.
In August, AMP advisers began receiving notices from the wealth giant that it was no longer financially viable for AMP to have them continue operating as they were.
AMP said the options available to the advisers included transitioning out of the network, restructuring or, in certain circumstances, remaining and merging.
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These advisers were given a deadline of October 31 to decide a course of action. AMP has now confirmed this deadline has been extended to November 29.
AMP said the decision came on the back of adviser feedback that they required additional information in order to properly consider their options. It also follows a request by the AMPFPA to ensure its members were adequately informed.
AMPFPA chief executive Neil Macdonald told Financial Standard typical areas of concern to advisers included clarification of AMP FP's comments on consideration of genuine retirees, negative equity on their loans (as a result of the new proposed valuations) and those which had recently borrowed money from AMP Bank.
"Planners were also seeking accurate data on grandfathered products and commissions, and in some cases needed time to consider where to go to or who to merge with," he said.
Commenting on the extension, AMP said: "AMP wanted to provide sufficient time for practices to consider their options, after which they enter into a transition period appropriate for their choice."
"It also creates an appropriate milestone to ensure practices work toward making a decision and that AMP can plan and progress its advice business reshape."
AMP said it had already extended the deadline for individual practices that had requested more time.
"We are committed to helping our advisers to choose the right path forward for them, their staff and their clients, and we are continuing to support them with a range of initiatives through this period," AMP said.
Macdonald also confirmed the law firm selected by AMPFPA on behalf of its members, Corrs, has written to advisers who have expressed interest in the legal action. In the letter, Corrs provided a timeline, including meetings in each state next month.
The law firm is confident it will be able to file an action against AMP in late November or early December, Macdonald said.