Financial regulator ASIC is taking wealth manager AMP to court for selling life insurance to dead people – one of the controversies from the banking royal commission.
The Australian Securities and Investments Commission alleges AMP charged life insurance premiums and advice fees to more than 2000 customers despite being told they were dead.
The charges were made from May 2015 to August 2019.
AMP said it discovered the problem in 2018 and reported it to the regulator.
The company said it has repaid $5.3 million to 10,155 customer accounts and changed its operations to ensure there is no repeat.
The charging of fees to dead people was one of many examples of shoddy dealings in the industry uncovered in the banking royal commission.
The commission gave its final report to parliament in 2019.
AMP shares were higher by 4.46 per cent to $1.11 at 1103 AEST on Wednesday.