AMP pays $14.7 million in compensation
An Australian Securities and Investments Commission (ASIC) investigation has seen AMP pay $8.4 million of the further $21.4 million in compensation required from Australia’s five largest banking and financial services institutions to customers who suffered losses as a result of non-compliant conduct by financial advisers.
The compensation stemmed from an ASIC report that reviewed advice compliance at AMP, ANZ, the Commonwealth Bank of Australia (CBA), the National Australia Bank (NAB) and Westpac between 1 January 2009 and 30 June 2015.
In December 2016, $30 million had been paid by the institutions to approximately 1,347 affected customers due to advice failings by 97 high risk advisers.
Upon further investigation by ASIC, the institutions have made the additional payments to more than 1,687 customers, totalling $51.4 million.
AMP paid the largest total amount in compensation, with $14.7 million paid to 1,266 customers, while NAB paid the least amount, totalling $4.7 million to 255 customers.
ASIC expected further compensation to be paid.
AUTHOR
Anastasia Santoreneos
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
