- AMP (ASX:AMP) shares have climbed today after reaching an agreement to settle the class action brought on behalf of certain advice practices authorised by AMPFP back in 2019
- AMP revealed that a settlement agreement, totalling $100 million, has been reached
- The settlement is subject to finalisation, execution, and Federal Court approval
- AMP last traded at 90.8 cents
AMP (ASX:AMP) shares climbed more than six per cent after reaching an agreement to settle the class action brought on behalf of certain advice practices authorised by AMPFP as of August 8, 2019.
The class action challenged the validity of changes made by AMPFP to its Buyer of Last Resort (BOLR) policy in August 2019.
In an announcement today, AMP revealed that a settlement agreement, totalling $100 million, has been reached.
However, this settlement is contingent upon the finalisation and execution of a deed of settlement and subsequent approval by the Federal Court of Australia.
Importantly, AMP had already provisioned $50 million in its 1H 2023 financial statements, based on the judgment issued on July 5, 2023.
“This is an important step forward for our Advice business and for AMP more broadly, as it allows us to put this legacy matter behind us, which has impacted relationships with our valued advisers,” AMP Chief Executive Alexis George said.
AMP last traded at 90.8 cents.