AMP prioritised profits over clients
AMP has acknowledged prioritising the interests of shareholders over those of clients, as it faced another day of examination before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry today.
AMP’s group executive for advice, Jack Regan agreed with a contention put by Counsel Assisting the Commission, Michael Hodge QC that it was clear AMP had prioritised the interests of shareholders at the expense of clients.
Hodge had been referring to an internal AMP memorandum which referenced ring-fencing a register of orphan clients to keep on-going fees going.
Asked his views on what had occurred, Regan said he believed there was reason to be concerned that AMP’s culture was not as robust as it should have been.
He said he believed the culture needed to be reviewed and analysed.
Hodge said that the evidence seemed to suggest that a conscious decision had been made to protect the profits of AMP at the expense of AMP clients and went on to ask Regan whether this issue had been the subject of any consideration at the board level.
Regan said that as far as he was aware the Board did not condone such an approach.
Later Hodge drew Regan’s attention to further correspondence and suggested that AMP had been guilty of providing false or misleading information to the Australian Securities and Investments Commission (ASIC) on as many as 15 occasions.
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