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.