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- Market regulator ASIC is taking AMP to federal court, alleging the financial services group took money from its deceased customers
- ASIC’s allegations come against five companies that were or are directly connected to AMP and claim the companies continued to charge more than 2000 customers, despite being notified of their deaths
- The charges, which include financial advice fees and superannuation premiums, amount to roughly $600,000 between May 2015 and August 2019
- In response, AMP contends it identified the issues back in 2018, reported it directly to the regulator and — as part of a wider remediation effort — refunded $5.3 million across more than 10,000 customer accounts
- It also claims these issues have already been covered in the financial services royal commission, which ran between 2017 and 2019
- Ahead of market open, AMP shares last traded at $1.06 per share
Market regulator ASIC is taking AMP (AMP) to federal court, alleging the financial services group took money from its deceased customers.
Allegations by the Australian Securities and Investments Commission come against five companies that were or are directly connected to AMP and claim the companies continued to charge more than 2000 customers, despite being notified of their deaths.
AMP Superannuation, NM Superannuation Proprietary, AMP Life — which is now a part of Resolution Life NZ — AMP Financial Planning Proprietary and AMP Services have all been called to court.
The charges, which include financial advice fees and superannuation premiums, amount to more than $600,000 between May 2015 and August 2019.
According to the allegations, the financial watchdog believes AMP has contravened its “overarching obligations as Australian financial services licensees to act efficiently, honestly and fairly.”
In a market announcement released earlier today, AMP contends it identified the issues back in 2018 before reporting it directly to the regulator and, as part of a wider remediation effort, refunded $5.3 million across more than 10,000 customer accounts.
AMP’s Group General Counsel, David Cullen, echoed this sentiment in a public statement.
“When we discovered the issues, we immediately moved to change our processes and systems and took action to ensure the beneficiaries of customers impacted were fully remediated. AMP apologises to all customers and beneficiaries who were impacted by this matter,” he said.
ASIC, it appears, remains unconvinced.
“Customers, and their beneficiaries, should have confidence that they will be correctly and lawfully charged for any financial services or products.”
Still, AMP claims these issues have already been covered by the financial services royal commission, an event that continues to haunt the now-struggling financial mainstay.
It was this same commission that first spelt disaster for AMP, revealing a ‘fee-for-no-services’ model that triggered a mass exodus of clients back in 2018. In the years since the royal commission, AMP shares have fallen more than 80 per cent and now hover at an all-time low of around a buck apiece.
A court date for the matter brought by ASIC is yet to be set.
Ahead of market open, AMP shares last traded at $1.06 per share.
