13 February 2020
AMP’s $2.5 billion full-year loss and $2.4 billion impairment charge highlights the turmoil the company has been in since the Hayne Royal Commission reported a year ago.
While shareholders will be concerned about the direction AMP is taking, decisions taken by the corporation have also destroyed the livelihood of hundreds of planners.
Finance Sector Union (FSU) National Assistant Secretary Nathan Rees said AMP has treated planners poorly.
“A total of 440 AMP financial planners have a contract to work in partnership with AMP.“
“That contract stipulates that in the event the planners business is bought back by AMP, it would be acquired at four times the value of annual revenue.”
“Late last year, AMP simply decided they would buy these businesses from their own planners for only one and a half times annual revenue. This has effectively reduced the value of each planner’s business by more than 60 per cent.”
“To make it worse, many planners borrowed money from AMP to establish their business.”
“AMP still wants that money back, at the same time as it is killing the value of the planner’s business.”
“Any reasonable person would see that this is simply wrong. Planners are losing their homes and their livelihoods, and there are genuine concerns about the mental health impacts of this decision by AMP.”
Media contact John Hill 0412197079