AMP IS ‘HELPING’

Wealth manager rejects claims of criminality EX-CBA MAN IN HOT SEAT

AMP says it “strenuously denies” allegations it may have committed a criminal offence by misleading regulators about fees for services its customers never received.

The wealth management giant has revealed almost 16,000 of its customers paid fees for financial advice they did not receive but said it was helping an Australian Securities and Investments Commission investigation before the matter was aired at the banking royal commission last week.

Responding to the banking royal commission yesterday, AMP said it “can only have been of assistance” to ASIC by providing the regulator with a report on the fees scandal prepared by law firm Clayton Utz.

The commission heard the report, which AMP billed as independent, was subjected to a board review before it was handed to the regulator last October.

AMP said “there is no evi- dence” to suggest the board acted inappropriately in relation to the preparation of the Clayton Utz report.

“AMP strenuously denies the allegation by counsel assisting that it is open to find that it has committed a criminal offence in providing to ASIC in October 2017 a report prepared by Clayton Utz,” AMP said yesterday.

The company revealed that 15,712 customers since 2008 had paid financial advice fees despite not receiving advice.

In most cases fee charges were the result of administrative error, AMP said.

Last week senior counsel assisting the commission Rowena Orr, QC, outlined a series of possible misconduct findings against AMP for misleading ASIC.

Ms Orr said AMP and its advice businesses misled ASIC 20 times about the nature and extent of its fees-for-noservice practice.

AMP said yesterday while its misrepresentation to ASIC was “plainly unacceptable”, there were only seven misrepresentations, not 20. The commission also heard there was misconduct around the Clayton Utz report, which went through 25 drafts with changes from the company being given to ASIC.

Clayton Utz chief executive partner Rob Cutler said it was “simply not true” that the firm was involved in misleading ASIC and said the report was not compromised. before