Little Reaction to ASIC AMP Action
AMP shares shrugged off legal action from ASIC which involves the most notorious part of the Hayne Royal Commission two years ago – the company’s charging fees to people after they had died.
In a statement on Thursday morning ASIC revealed that it had started civil penalty proceedings in the Federal Court against five companies that are, or were, part of AMP “alleging that these entities were involved in charging life insurance premiums and advice fees to more than 2,000 customers despite being notified of their death.”
AMP shares rose 8.4% to $1.155 at the close because investors think the case has been settled, or will be settled after AMP pointed out in a separate statement that it had paid more than $5 million in compensation.
ASIC claimed that “AMP companies received over $500,000 in insurance premiums from the superannuation accounts of deceased customers, with at least $350,000 charged between May 2015 and August 2019.”
“Additionally, it is alleged that the AMP companies received over $100,000 in advice fees from deceased customer accounts, with at least $75,000 being charged between May 2015 and August 2019.”
ASIC further alleged that the AMP companies’ conduct demonstrated a system of conduct or pattern of behaviour that was, in all the circumstances, unconscionable.
