AMP -6.14%: the wealth management company struggled today after losing two test cases in the Federal Court regarding the buyer of last resort (BOLR) program. A number of financial advisers have taken the company to court in a class action after AMP reduced the multiple it paid advisors for their business. AMP has the option to appeal however it would appear difficult to overturn the decision which will have knock-on effects for the dozens of remaining advisors tied to the case. The initial case has awarded payouts of over $800k to the lead applicant, and over $100k to a sample member, but these numbers could only be the tip of the iceberg if these decisions are upheld.
MM is neutral AMP
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