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Federal Court judge Mark Moshinsky ruled the scheme was invalid in July, meaning AMP would have to pay exiting financial planners almost double what it had proposed.
He ordered AMP to pay $929,000 in damages to the lead and sample plaintiffs, but the final damages bill was unclear as the number of advisers who used the scheme and the value of their businesses was unknown.
In July, analysts warned that under some calculations, AMP could have been forced to pay out more than $400 million to the wronged advisers.
While that was a “worst-case assessment”, according to JPMorgan, multiple analysts predicted the bill would amount to at least $100 million.
Thursday’s proposed payout, which is still subject to the finalisation of a deed of settlement and a stamp of approval from the Federal Court, would limit damages from the class action in its entirety, including areas where the court did not make a judgment, to $100 million.
It also comes without any admission of liability despite the Federal Court already ruling AMP forced an invalid policy on its advisers.
AMP chief executive Alexis George said the settlement would let the company “put this legacy matter behind us”.
“We’ve worked very hard in recent years on rebuilding the relationship with advisers, and we’re looking forward to working with them in the delivery of quality financial advice,” she said.
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