AMP hit with $24 million penalty over deceased customer charges

Mike Taylor

Managing Editor and Publisher

19 May 2023

AMP Limited has agreed to pay a $24 million penalty at the end of a process begun in 2018 when it self-reported deducting fees from deceased customer accounts.

AMP announced to the Australian Securities Exchange today that the Federal Court had determined the penalty as part of civil penalty proceedings relating to contraventions concerning the deduction and retention of life insurance premiums and advice service fees from superannuation accounts of deceased customers.

AMP noted that it had self-reported the issues and had taken action to change its processes and policies to address the issues.

It said it had remediated 10,1555 customer accounts a sum of approximately $5.2 million for the period from 2011 to 2019 which included compensation for lost earnings.