ASIC ends criminal case against AMP

Financial services group AMP will not face criminal prosecution three years after a banking royal commission found it had charged customers fees for no service.

The corporate regulator on Friday said it had ended its investigation into the issue involving customers being charged for financial advice despite not having a financial advisor under its buyer of last resort arrangements.

The Australian Securities and Investments Commission had gone to the Commonwealth Director of Public Prosecutions, presenting two briefs of evidence in mid-2020, with a view to criminal charges being laid.

“The CDPP has now determined, on the basis of the available evidence and weighing the relevant public interest factors, that no charges should be brought for that conduct,” ASIC said.

The allegations emerged during evidence to the Financial Services Royal Commission in 2018.

AMP said it was pleased the matter was now closed.

“We have apologised to all affected clients and confirm that remediation was also completed in full in 2018,” it said in a statement.

AMP noted it had at the time improved monitoring and reporting to protect against such a thing happening again.

This was not the only fees-for-no-service scandal at AMP.

It also allegedly charged fees for life insurance to the accounts of thousands of dead superannuation customers, the banking royal commission heard.

This issue, which is still before the courts, claimed the jobs of AMP’s then CEO and chair, led to a share price slump and sparked shareholder class actions.

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.