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ASIC drops criminal charges against AMP

  • July 16 2021
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ASIC drops criminal charges against AMP

By Cameron Micallef
July 16 2021

The corporate watchdog has announced it has finalised an investigation into the alleged fees-for-no-service conducted by AMP’s financial planning, as part of the royal commission into the banking sector.

ASIC drops criminal charges against AMP

ASIC drops criminal charges against AMP

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  • July 16 2021
  • Share

The corporate watchdog has announced it has finalised an investigation into the alleged fees-for-no-service conducted by AMP’s financial planning, as part of the royal commission into the banking sector.

ASIC drops criminal charges against AMP

On Friday, 16 July, the corporate regulator confirmed that, following consultation with the CDPP, no charges should be brought for the conduct, which saw customers without a financial adviser continue to be charged fees for financial advice.

ASIC’s investigation related to suspected criminal conduct regarding the charging of fees for no service in relation to the buyers of last resort (BOLR) Policy in breach of section 1041G (prohibition on dishonest conduct) of the Corporations Act 2001.

ASIC also investigated AMP for breaches of section 1308(2) (prohibition on making misleading statements) of the Corporations Act in relation to this conduct.

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The investigation commenced in April 2019, while two briefs of evidence were brought to the CDPP’s attention mid last year.

ASIC has filed these two briefs of evidence with the CDPP, indicating they believe they have a strong case against AMP, should the fight go to the courts.

“ASIC’s investigations into other allegations of fees for no service conduct within the AMP Limited group are continuing,” a statement released by ASIC reads.

“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.”

AMP has repaid more than $153 million to customers in relation to fees-for-no-service conduct in recent years.

In a brief statement to the ASX, AMP said it welcomes the confirmation from ASIC that it will take no action in relation to either the processes or reporting of the historical fees-for-no-service conduct associated with AMP’s BOLR arrangement.

AMP’s group general counsel David Cullen said AMP acknowledges the deficiencies in the historic system and prices with the advised business to monitor ongoing fees in relation to BOLR.

“In 2018, the business completed the implementation of enhanced systems and controls to improve monitoring and reporting and to protect against recurrence,” Mr Cullen told the market.

“We applied to all affected clients and confirmed the remediation was also completed in full in 2018.

“With today’s confirmation that no action will be taken, we are pleased to have closure on the matter.”

ASIC drops criminal charges against AMP
ASIC drops criminal charges against AMP
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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