LOGIN JOIN SHARECAFE SIGN UP FOR OUR NEWSLETTER ADVERTISE
share cafe logo  
 
SHARECAFE COMMENTARY

ASIC Blow Bumps AMP Shares To 15-Year Low
BY GLENN DYER - 29/06/2018 | VIEW MORE ARTICLES BY GLENN DYER

Get More Commentary, Discussion & Market Information On -

AMP - AMP LIMITED


AMP shares fell to a fresh 15-year low yesterday after ASIC launched Federal Court action against the wealth manager on Wednesday afternoon over allegations its advisers churned customers into less suitable insurance policies purely to win commissions.

The company’s shares fell as much as 1.1% to $3.53 in early trade on Thursday, their lowest since August 2003. The later won back ground to end the day up 0.3% at $3.58.

The Australian Securities and Investments Commission is alleging that AMP financial planners advised life insurance customers to take out new policies that downgraded cover but earned higher commissions.

The regulator contends that AMP failed to take reasonable steps to address the issue.

ASIC said its proceedings were related to AMP's alleged failure to ensure financial planners acted in the best interests of their clients.

"By advising clients to submit new applications, the financial planners stood to receive higher commissions than they would have received under a transfer, whilst at the same time exposing the clients unnecessarily to underwriting and associated risks," ASIC said.

"ASIC alleges that this type of advice was inappropriate, and that the financial planners failed to act in the best interests of the clients and to prioritise the interests of the clients."

The parties are in court next month and AMP says it will work with ASIC.



View More Articles By Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.



 

SHARECAFE VIDEO


Ironbark Karara discuss Altium (ASX:ALU)

More video   

RECENTLY ADDED TO SHARECAFE


 › Market At Midday On Friday
 › Burning Questions Over Avita, Polynovo Valuations
 › The Market Doesn't Care What Price You Paid
 › Getting Started With The Basics
 › Next Week At A Glance
 › The Overnight Report: Off The Boil
 › TCL - Citi rates the stock as Sell
 › S32 - Macquarie rates the stock as Outperform
 › CMA - Morgans rates the stock as Add
 › ACCC Delays Transurban Decision
 › Manganese Drives South32 North
 › OZ Minerals Keeps Shareholder Faith
 › Santos Shifts Closer To Dividend Payout
 › NSW Leads Jobs Rebound In June
More ShareCafe   

GET THE SHARECAFE BREAKFAST BRIEFING


Delivered free to your inbox before the market opens each trading day. Sign up below +