AMP denies allegations of criminal conduct
Written on the 4 May 2018 by Paris Faint
AMP has denied allegations that it acted criminally, two weeks after the financial services provider openly admitted it was charging its customers for advice they never received.
Regarding what it calls the 'fee for no service' issue, AMP takes full responsibility however does not accept submissions made to the Banking Royal Commission by Counsel Assisting Rowena Orr QC that it's actions amount to a criminal offence.
The bank also denies allegations that it overstepped bounds when it provided ASIC with a report from an "independent" investigation into its business, compiled by Clayton Utz.
The investigation by Clayton Utz involved a full review of AMP's financial advice arm in relation to fee for no service matters, issuing findings in respect to current and former AMP employees as well as the systems, governance, culture and process of its business.
Orr has alleged that AMP committed a criminal offence by providing the Clayton Utz report to ASIC, an accusation which the company has denied.
"AMP strenuously denies the allegation by Counsel Assisting that it is open to find that AMP has committed a criminal offence in providing the Clayton Utz report to ASIC," said the company in its statement to the Royal Commission.
"There is no evidence to suggest that the Board, including the former Chairman and former CEO, acted inappropriately in relation to report."
The company went on to say that the "extent of interaction between AMP and Clayton Utz has been overstated" and that AMP management were not aware of the extent and interaction between the two companies during the report's preparation.
Two of AMPs directors, CEO Craig Meller and Chairman Catherine Brenner, have departed the company during the Royal Commission.
Whilst Meller and Brenner have accepted responsibility for the outcome, they both claim to have been unaware of AMPs 'fee for no service' misconduct.
AMP together with the nation's big four banks have collectively paid nearly $219 million in compensation to more than 310,000 financial advice customers charged fees for no service in return.
AMP has personally refunded $4.7 million across more than 15,700 customers since it began cooperating with ASIC in May last year.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Author: Paris Faint