Most definitely it was run past the legal team- I'll give you a synopsis of the conversation:
Frankie Baby- Ive got an idea! Board- Whats that? Frankie Baby- Lets reduce the BOLR multiple. Board- Why? Frankie Baby- It reduces the liability of BOLR to us. Plus we are planning on culling a lot of these single planners, that way we pay less for their forced exit. Board- Didnt we just sell a whole lot of registers last month for $20m to planners at a multiple of 4 x? Plus due to FOFA reforms our BOLR Liability will be reducing by millions! I mean we turned off trail before legislated timeframes, we screwed them on underwritten insurance policies due to that group insurance trust- havent we done enough colum penetrating of these guys? Frankie Baby- Yeh- what's your point? This is business and I need to hit targets to get my bonus. Board- Yeh, okay- We should read the BOLR terms and hold a special meeting with the AMPFPA. Frankie Baby- Lets hold off on that meeting for now. I want to talk to our legal team.
Frankie Baby- Thanks for coming in for this meeting. Legal Team- Nice to finally meet you Frankie. Whats up, how have you enjoyed your time with AMP? Frankie Baby- Its been a quick first 3 months. It took me a couple of months to settle in, you know- work the coffee machine. Pretty tough environment out there at the moment. Ive got a plan that I want to run past you. Legal Team- Whats that. Frankie Baby- I gonna change the BOLR terms. Legal Team- Ok sweet there are provisions in there that can change the BOLR terms. Firstly there is the notice period to notify planners. Frankie Baby- No, that wont work- every planner would put in their notice, cause they would want to maintain what they paid for and worked hard for. Legal Team- Ok, well the notice period can be reduced in negotiation with the AMPFPA. Frankie Baby- Thought of that. Wont work, we are months away from this announcement and if we consult with them, they will rightly inform the planners and we will have a fight on our hands. Look I wouldnt want to be screwed over like that and neither would you- so we cant consult the association. Give me something else. Legal Team- the clause relating to legislation, economic or product changes. Now the intent of this clause is to ensure that the BOLR terms dont breach or be subject to a penalty under any laws. Even though the intent of this clause is to make instant changes it is meant to protect the integrity of the contract so that it remains lawful. But what you are planning isnt really the case. However, as you seem to be hell bent on this idea and as your legal counsellors we have something for you. The complexity of the law is in the interpretation of wording. Law is enforced, the way the law is written, its not about just. I'ts about the interpretation of the law and who has the best lawyer. Frankie, remember our size, as if a local yokle will put up funds to fight us. As a warning - this interpretation is pretty sketchy so I would put funds aside for compensation as the interpretation of the contract will be contested and if the courts interpret this clause in its entirety and the intent it was written- we will lose. Frankie- Thanks for your counsel. So it's a goer. Do I have to back up our claims? Legal Team- Not yet, just say that it was due to economic changes. We will deal with this later on. There's plenty of stuff we can try and base this on, a lot of changes going on so we'll go with that. Plus we wont be going to trial well settle before hand. Frankie - doesnt matter Ill be out of here before then. Legal Team- You not sticking around Frankie. Frankie- Hell no. I dont know what Im doing.
AMP Price at posting:
$1.08 Sentiment: None Disclosure: Not Held
(20min delay)