AMP Life and AMP Capital fined



AMP Life and AMP Capital have been fined $275,500 and $250,500 respectively, in relation to trade reporting rules regarding derivative transaction and position information to derivative trade repositories.
The Australian Securities and Investments Commission (ASIC) said it believed that both AMP Life and AMP Capital breached the ASIC Derivative Transactions (Reporting) Rules 2013 between August, 2015 and February, 2018 and between March, 2016 and September, 2018, respectively.
According to the regulator, AMP Life failed to:
- Report information about 940 transactions on 113 separate business days;
- Correctly report collateral information about 9,224 transactions on 388 separate business days; and
- Take all reasonable steps to ensure that BNP Paribas Fund Services Australasia Pty Ltd (BNP), on behalf of AMP Life, was reporting information that was complete, accurate and current.
ASIC also believed there were reasonable grounds to believe that AMP Capital:
- Report information about 140 transactions on 34 separate business days;
- Correctly report collateral information about 9,999 transactions on 417 separate business days; and
- Take all reasonable steps to ensure that BNP, on behalf of AMP Capital, was reporting information that was complete, accurate and current.
ASIC also said that breaches arose out of administrative failings.
“However, the duration of each of the reporting failures was significant and the time taken to identify them shows serious inadequacies in AMP Life's and AMP Capital's processes and procedures for monitoring the accuracy of their reporting,” the regulator said.
“AMP Life and AMP Capital have taken, and are continuing to take, actions to remedy their reporting failures and are implementing systems and processes aimed at preventing future failures of this kind.”
ASIC rules required counterparties to report derivative transaction and position information to derivative trade repositories as this reporting was necessary to enhance the transparency of transaction information available to regulators, promote financial stability and support the detection and prevention of market abuse.
Recommended for you
Magellan has closed out the financial year with funds under management approaching $40 billion and outlined its estimated performance fees.
First Sentier Investors chief executive, Mark Steinberg, is set to depart the asset manager after seven years.
Metrics Credit Partners has completed the acquisition of Taurus Finance Group and BC Investment Group as it looks to launch consumer lending arm Navalo.
AMP has announced to the ASX that it is being sued by property fund manager Dexus regarding the sale of its real estate and domestic infrastructure equity business.