Adviser Class action & realamp web site, page-347

Don't think it works that way- The basic principle of Australian contract law is freedom of contract, under which parties are at liberty to strike whatever bargain they choose.

That's the problem- both parties did not agree to it. The terms of the existing contract were not met.

I believe AMP made a mistake in regards to this decision. One dimensionally they wrote off their liability. Sure get rid of the non-compliant, under educated planners and firms. I get that- it makes sense. The board is always banging on about the need to remunerate well to get quality. Well if they believe its important at the top end of town wouldnt this also apply to the main drivers of success in the wealth division. I seriously believe that one of the main outcomes of higher than market rate terms, is numbers on the ground and growth. Now AMP is in line with the market, planners will actively seek licensees that provides innovative tech, support and compliance offers- something AMP has been trying to improve for the last 10 years- with or without success, you decide.

Even though the legal team backed the decision by Economic Conditions I would love to see what conditions these were. The changes post RC actually improved AMP's BOLR liability, as many forms of income which formed the basis of BOLR buy back were switched off- group insurance trail, FUM trail and the like. Many planners businesses suffered reduced cash flow and it therefore reduce the value of the business. If a client has no income value to the planner then that client has no BOLR value. I believe though it is still practised today, that AMP is trying to sell clients with no income value at a notional value to planners- WTF "Um this client has no value so we will give you nothing to you"- "This client has no income but a notional value is applied, so we will sell it to you for $$$"- really!

Shareholders should be deeply upset by this decision made by AMP. I believe that AMP lost sight of the importance to the conduit to their present and future customers.