AMP offers cautious response to ASIC court action
AMP has responded to the charges filed against AMP Financial Planning (AMPFP) by the Australian Securities and Investments Commission (ASIC) with a careful statement that states they are working with the regulator regarding the proceedings.
ASIC would seek civil penalties against AMPFP from the Federal Court, alleging that it failed to ensure its planners complied with the best interests duty and related obligations imposed by the Corporations Act.
“AMP has been co-operating with an ASIC investigation of the matter, which commenced in 2014. AMP will carefully consider ASIC’s pleadings and file its defence in due course. In the meantime, we will work with ASIC to agree a timetable for the progress of the proceedings,” AMP said.
The allegations stem from behaviour from some planners, including Rommel Panganiban. The regulator banned Panganiban in 2016 and the Administrative Appeals Tribunal upheld the ban on appeal last year.
AMP responded directly to these allegations, saying that AMPFP removed Panganiban’s authorisation in 2014 and reported his conduct to ASIC.
The firm said that it was currently in the process of apologising to and compensating the customers impacted by Panganiban’s actions.
It also said it had continued to enhance its monitoring and supervision activities to monitor the writing of new insurance policies.
AUTHOR
Hannah Wootton
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