AMP has been accused of putting hundreds of its own financial planners out of business.

AMP is slashing the number of its aligned advisers by a third as part of an aggressive restructuring.

It has written to almost 200 aligned financial planners to terminate their partnership with AMP by the end of October.

Additionally, it has almost halved the amount that it will sell their businesses back to them.

AMP had told planners that it would buy and sell at four times the annual earnings of each business, but that pledge has been dropped to two-and-a-half times the earnings of businesses.

“To be sold something on one basis, and then to have that basis completely eroded by a significant amount is absolutely reprehensible, in my opinion,” an anonymous planner has told reporters.

The planner bought clients from AMP several years ago.

“In effect, it means AMP can buy books back now for significantly less than what they sold it to you,” he said.

“In the paperwork that's been put in front of me that I haven't yet signed, if I don't paint AMP in a glowing light they can remove all options that are currently available to me and essentially throw me on the street,” he said.