Australia court fines AMP $3.5 million over incorrect insurance advice
Reuters
Published Feb 05, 2020 12:59AM ET
Australia court fines AMP $3.5 million over incorrect insurance advice
(Reuters) - Australia's Federal Court has ordered wealth manager AMP Ltd (AX:AMP) to pay a penalty of A$5.2 million ($3.5 million) for failing to prevent incorrect insurance advice by financial planners, the corporate watchdog said on Wednesday.
AMP is battling to steady itself a year after a public inquiry into the finance sector accused it of improperly charging fees and attempting to deceive regulators.
In June 2018, the Australian Securities and Investment Commissions accused reut.rs/372nwmu the firm's financial planners of advising clients to cancel existing insurance policies and apply for new similar replacement policies, so as to win higher commissions.
"This penalty proceeding reflects a lamentable failure of corporate will to take the necessary steps to prevent greedy and unlawful conduct," the court said in its judgment, which also faulted the firm's lack of a swift and proper remedial response.
AMP admitted to the case against it in May last year.
The court is to order a review and remediation program by AMP to ensure proper compensation for the affected clients, it added.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.