AMP confirms $14.5 million Plan Service Fee penalty
AMP Limited has acknowledged being penalised $14.5 million by the Federal Court as a result of civil penalty proceedings initiated by the Australian Securities and Investments Commission (ASIC).
AMP has told the Australian Securities Exchange that the penalty related to breaches concerning the historic charging of Plan Service Fees with the case dating back to 2018.
It said that in 2018, AMP became aware that some AMP Flexible Super members continued to be charged a Plan Service Fee after transferring from their corporate super plan into a retail account.
The announcement said AMP took action to rectify the issue, self-reported to ASIC, apologised to customers and subsequently completed the remediation of affected members.
The remediation was completed in November 2019, with approximately 2,500 customers being remediated a total sum of approximately $900,000 covering fees charged and lost earnings, the AMP announcement said.
The company said the penalty of $14.5 million handed down today had already been provisioned by AMP in its half-year financial statements.
I wonder if AMP will dock their Directors and managements wages for this error given how quickly they were to charge advisors for fee for service issues!
Oh come on Rex, you know that’s just a dream. It’s never management, CEOs, Directors or any big wigs, they are totally immune from any problems they over see.
It’s always Advisers fault, always.
I think the big wigs must deserve another pay rise :-/