A judge has imposed a $14.5 million penalty on five AMP entities, saying it was “surprising and concerning” that the wealth manager deducted $356,000 from customers’ superannuation accounts for advice they never received, despite numerous complaints.
ASIC has told a judge AMP should face a $17.5 million penalty for deducting $356,000 from customers’ superannuation accounts for advice they never received, saying the wealth manager had shown “no real contrition” for its conduct.
AMP has admitted ASIC’s allegations that it acted unconscionably in charging life insurance premiums and advice fees to deceased customers, but the wealth manager will go head to head with the regulator over how much it should pay for its contraventions.
AMP has admitted two of its units charged customers fees for no service but denied it acted unconscionably in a case brought by the corporate regulator alleging it continued to charge advice fees and life insurance premiums to customers who had died.
AMP has admitted to contraventions and will face a penalty in ASIC proceedings over fees-for-no-service conduct that allegedly led to upwards of $600,000 being unlawfully withdrawn from superannuation member accounts.
AMP has hit back at fees for no service court proceedings brought by ASIC, arguing it was legally entitled to charge customers premiums and advice fees for life insurance after they died.