AMP Limited is worried that it may have another fees for no service case on its hands.
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry revealed that AMP has discovered incidents as recently as mid-October relating to the charging of fees where no financial advice services were provided.
The revelation came as AMP acting chief executive, Mike Wilkins was giving testimony to the Royal Commission in which he confirmed the company was currently conducting a detail historical review of the fees of the planned service fees within its superannuation funds.
He agreed that an initial and high level assessment had indicated that there were policy and control gaps in the management and monitoring of fees charged to workplace super members and for fees received by AMP advisers.
Wilkins also confirmed that AMP had identified eight incidents as at 17 October 2018 with respect to charging of planned service fees and the provision of services.
However, while the AMP CEO could confirm that the incidents were being investigated he could not confirm that they had been breach reported to the Australian Securities and Investments Commission (ASIC).
Asked by counsel assisting the commission whether there was a risk that AMP might have another fees for service case on its hands, Wilkins responded “yes”.