Amp controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
ASIC sues AMP companies over alleged advice fees
Lawsuit filed
ASIC commenced civil penalty proceedings in the Federal Court against six companies that are or were part of the AMP Limited group, alleging they charged fees for financial advice that affected customers could no longer access. ASIC is seeking declarations, pecuniary penalties and adverse publicity orders; the allegations are not stated as court findings.
Source excerpt
The six AMP companies are: AMP Superannuation Limited; AMP Life Limited, which is now owned by Resolution Life NZ, but was part of AMP when the conduct occurred; AMP Financial Planning Proprietary Limited; AMP Services Limited; Charter Financial Planning Limited; and Hillross Financial Services Limited.
ASIC has commenced civil penalty proceedings in the Federal Court against six companies that are, or were, part of the AMP Limited group, alleging these entities charged fees for no service on corporate superannuation accounts.
2021
ASIC sues AMP companies over charges to deceased customers
Lawsuit filed
ASIC filed a lawsuit against five AMP-owned companies, alleging they charged deceased customers for insurance and financial advice and engaged in unconscionable conduct. The allegations are not established as findings in the supplied report.
Company response
Remediation — AMP
AMP acknowledged the civil proceedings in a statement with the ASX, claiming the issue was covered in the royal commission and AMP had subsequently completed a remediation program to compensate more than 10,000 customers a total sum of $5.3 million, which included compensation for lost earnings.
Ongoing disclosure — AMP
We have been assisting ASIC with its investigation and will continue to engage constructively as part of the legal process
Apology — AMP
AMP apologises to all customers and beneficiaries who were impacted by this matter.
Source excerpt
“ASIC further alleges that the AMP companies’ conduct demonstrated a system of conduct or pattern of behaviour that was, in all the circumstances, unconscionable,” it said.
The regulator alleges AMP collected more than $500,000 in life insurance premiums from more than 2000 dead customers’ superannuation accounts, and $100,000 in financial advice fees from 27 dead customers.
The Australian Securities and Investments Commission announced on Thursday morning it has filed a lawsuit in the Federal Court against five AMP-owned companies related to “unconscionable” practices occurring from May 2015 to August 2019.
2020
Australian court fines AMP
Fine or penalty
In a 2020 news event, the Federal Court of Australia fined AMP $5.175 million. According to the report, AMP staff exploited customers for profit, and financial planners acted against clients' interests in order to earn commission. The report characterized the conduct as a failure to protect customers from exploitation. The event was reported on 5 February 2020.
Source excerpt
AMP was fined $5.175 million by the Federal Court of Australia on Wednesday. The insurance company allowed its own staff to exploit customers for profit. AMP financial planners would act against client interests to earn commission.
2020
Federal court fines AMP over client insurance churning
Fine or penalty
An Australian federal court fined AMP $5.175 million after finding that it allowed financial advisers to move clients into new insurance policies when their existing policies were not defective. The court found that the conduct disadvantaged clients and criticized AMP's response and compliance system.
Source excerpt
In addition to the fine, Lee found that AMP’s existing program to compensate such clients was inadequate and ordered it to undertake a new program, overseen by the court.
In a judgment handed down on Wednesday, Justice Michael Lee found AMP was “the right place” for greed and said it was arguable the penalty – which was more than Australian Securities and Investments Commission (Asic) asked for – was “an inadequate reflection of the seriousness of the conduct” exposed in the case, but the law limited the fine he could impose.
By writing a new policy, instead of continuing the old one or arranging a transfer into a new one, the planners earned large commissions and put clients at a financial disadvantage.
2020
Former AMP employee alleges sexual misconduct
Issue disclosure
A former employee of AMP wrote to Australian senator Deborah O'Neill alleging that she experienced systematic sexual harassment and bullying while working at AMP. The claims were reported as allegations rather than as a finding. The correspondence was sent to the senator, and the matter was described in media reporting as an allegation of sexual misconduct. No determination of the claims is recorded in the source material.
A former AMP employee wrote to Australian senator Deborah O’Neill alleging that she experienced systematic sexual harassment and bullying while working at AMP. The claims are reported as allegations, not as a finding.
Source excerpt
An ex-employee of Australian financial services firm AMP has written to senator Deborah O’Neill to share allegations of sexual misconduct she endured during her time at the company.
As a junior female employee I endured consistent and systematic harassment at AMP from men at the peer level to executive level.