Hi Squeaks,
We will just have to differ on the arms and legs , but a nice metaphor, even if I think it is misplaced.
Back to what we were talking about with provisioning, I am sure there are lots of people still haven't got their head around it. Hopefully extracts will clarify things a bit.
Below is a number of bits taken from the 2020 annual report
''Where it is determined that the disclosure of information in relation to a contingent liability can be expected to seriously prejudice the position of the AMP group (or its insurers) in a dispute, accounting standards allow the AMP group not to disclose such information. It is AMP group’s policy that such information is not disclosed in this note.''
"Buy-back arrangementsAMP has contractual arrangements with financial advice businesses in the aligned AMP advice network to purchase their client registers at agreed multiples to revenues subject to certain conditions being met. These buy-back arrangements include arrangements known as Buyer of Last Resort (BOLR). Advice businesses must register their intention to invoke buy-back arrangements, which have six to 18-month lead times and are subject to audit prior to finalising the purchase price. Client registers are either acquired outright by AMP or AMP facilitates a sale to an existing business within the aligned AMP advice network.Where a notice of intention to invoke the buy-back arrangement has been received, or is considered likely to be received in future periods, and AMP has concluded that the purchase price of the register exceeds the value of the client register to AMP, or where ongoing service arrangements would be unable to be serviced or sold, a provision has been raised for the difference. The provision is judgemental and the actual notices received and resulting loss incurred upon settlement of the arrangements may vary significantly from the provision."
This is one of the bits which confuse people , it does not refer to the litigation , but to the year by year processing of bolr , as Squeaks refers to .
69 million bucks.
Now after the last passage quoted above in the report, there is commentary about the various cases , I wont clog the thread by posting it all , but it is worth reading all of 6.4 in the financial statements.
Starts at page 127
A small bit from litigations.
''Currently, it is not possible to determine the ultimate impact of these claims, if any, upon AMP. The proceedings are being defended'' this line from the super class action is in all of them , add that to passage above on the risk of prejudicing a case .
Now, if you are a complete masochist , research the audit rules on provisioning and contingent liabilities.
So , in summary, there is no provision for any of the class actions.
We have ''talked'' ad nauseum about the planners , but the others aren't necessarily peanuts when taken together, and is some ways they are more damaging in keeping AMP's past transgressions in the spotlight.
cheers
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