THE ROYAL COMMISSION CASE STUDIES

AMP has a network of 2800 authorised financial advisers through its various advice licensees.

The contractual arrangements typically include a buy-back clause, where the advisers’ client register can be acquired by the licensee and held until it is on-sold.

The case study will examine AMP’s conduct in connection with the charging of fees to clients that its licensees had bought back from advisers and who did not receive services.

The inquiry heard clients often received no service or did not receive the service they were entitled to, yet ongoing fees continued to be deductedfrom their investments.

CBA subsidiaries Commonwealth Financial Planning and BW Financial Advice are paying $88.6 million in compensation to 31,500 customers over fees for no service conduct.

This case study concerns the financial advice provided by two advisers and the adequacy of Westpac’s systems and processes for preventing and detecting inappropriate advice provided by employed financial advisers. The case study concerns the financial advice provided by two advisers and the adequacy of the systems for preventing and detecting inappropriate advice by authorised representatives.

The case study concerns three advisers within AMP’s network. It will look at specific forms of inappropriate advice, including insurance switching, superannuation switching, selfmanaged superannuation fund advice and conflicted advice.

It will also consider issues concerning the recruitment of