Risk Regulatory Update
/AMP facing $14m in fines
AMP and five of its past or present companies have been penalised for charging fees for no service to almost 1,500 superannuation members. AMP Superannuation, AMP Life, AMP Financial Planning, AMP Services, Charter Financial Planning and Hillross Financial Services are all facing penalties.
Between 2015 and 2018, the court found AMP took over $350,000 in fees despite the members having ceased employment and were no longer able to access the advice services. AMP has remediated almost $700,000 to affected customers, the court found that AMP failed to investigate if there were systemic issues and did not take proper steps to ensure it didn’t happen again.
Dixon to pay $7.2m penalty
Dixon Advisory and Superannuation Services Pty Limited is to pay $7.2 million in penalties after the Federal Court found six of the company’s representatives failed to act in their clients’ best interest and did not provide appropriate advice for the circumstances.
It was found by the court that on 53 occasions between 2015 and 2019 that Dixon Advisory (now in voluntary administration) was responsible for the six financial advisers who failed their eight clients.
FPA and AFA to merge, in talks since last year
The Financial Planning Association of Australia (FPA) and Association of Financial Advisers (AFA) have announced a merger, and in a podcast episode (ifa Show), Sarah Abood and Phil Anderson, the heads of the respective organisations, said they’d been in talks since last year, despite protestations to the contrary.