Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Reuters
Reuters
Business

Australia court fines AMP $3.5 million over incorrect insurance advice

The logo of AMP Ltd, Australia's biggest retail wealth manager, adorns their head office located in central Sydney, Australia, May 5, 2017. REUTERS/David Gray

Australia's Federal Court has ordered wealth manager AMP Ltd <AMP.AX> 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 judgement, 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 programme by AMP to ensure proper compensation for the affected clients, it added.

(Reporting by Niyati Shetty in Bengaluru; Editing by Clarence Fernandez)

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.