AMP in another fee for no service scandal
Wealth manager AMP is embroiled in another fees for no service controversy - this time with superannuation customers.
The Australian Securities and Investments Commission (ASIC) alleges six AMP companies charged more than $600,000 in advice fees to 1500 customers despite being told they could no longer access the advice.
The customers had left their employer-sponsored superannuation accounts.
AMP did not have a system to prevent these charges once a customer left.
ASIC is taking AMP to the Federal Court over the charges, which occurred between 2015 and 2019.
The wealth manager on Friday said staff in 2018 realised customers of AMP Flexible Super were still being charged after leaving their corporate super plan.
AMP said it reported the problem to ASIC and paid $900,000 to more than 2500 customers by November 2019. These payments covered fees and lost earnings.
The six companies involved were AMP Superannuation, AMP Life, AMP Financial Planning, AMP Services, Charter Financial Planning and Hillross Financial Services.
ASIC has previously sued AMP for charging life insurance premiums to more than 2000 customers despite being told they were dead.
Shares were down 1.41 per cent to $1.05 at 1114 AEST.
Get the latest news from thewest.com.au in your inbox.
Sign up for our emails