In our Commercial Update of 14 August last year (Sale or purchase of financial planning practices) we commented on the significant volatility and turmoil which the financial planning industry had experienced in the preceding several years. That included, amongst other things, the Royal Commission and the filing of a class action by AMP planners challenging the changes made by AMP to its Buyer of Last Resort (BOLR) Policy.
The class action is winding its way through the Federal Court. Andrew Cox and Michael Bishop of our office have been advising AMP planners on various aspects of their exit from AMP including in connection with associated finance arrangements with AMP Bank but also regarding how to exit AMP whilst seeking to preserve their rights to participate in the class action.
On the transaction front, during the course of this year we have been seeing significant deal flow in the financial planning sector in relation to sale of financial planning practices but also the sale of books of business between planning businesses. These transactions have been underpinned by robust valuations and generous multiples. Pointon Partners has significant experience in acting in such transactions including advising on exit arrangements with the existing licensee and review of documentation provided by a new licensee.
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