ASIC has ended it’s investigation into AMP which lasted for 3 years.
The post AMP (ASX:AMP) share price slides as ASIC ends criminal proceedings appeared first on The Motley Fool Australia. –
The AMP Ltd (ASX: AMP) share price has slipped into the red this morning.
Let’s take a closer look at how it unfolded this morning.
ASIC drops its case against AMP
AMP came under fire from ASIC due to its “fees for no service” conduct that came through the Royal Commission into banking in 2017 – 2019.
It was shown to be charging fees on life insurance policies for deceased customers.
Obviously, these customers weren’t eligible for life insurance in the first place.
Royal Commissioner Kenneth Hayne QC recommended AMP receive criminal proceedings as a result of this conduct.
However, ASIC decided there will be no criminal charges after ending its investigation into AMP today.
In a statement, ASIC stated:
The CDPP has now determined, on the basis of the available evidence and weighing the relevant public interest factors, that no charges should be brought for that conduct.
AMP also responded, claiming it “welcomes the confirmation from ASIC that it will take no action” in relation to any of the allegations.
Speaking on the issue, AMP Group general counsel David Cullen said:
AMP acknowledges the deficiencies in its historic systems and processes within the Advice business to
monitor ongoing service fees in relation to Buyers of Last Resort…We have apologised to all affected clients
and confirm that remediation was also completed in full in 2018.
Despite the outcome, investors have punished AMP shares this morning, pushing the price 1.17% into the red at the time of writing.
AMP share price snapshot
AMP shares have slipped 30% into the red this year to date, extending the last 12 month’s loss of ~38%.
Both of these returns have lagged the S&P / ASX 200 Index (ASX: XJO)’s return of ~22% over the last year.
At the time of writing, AMP has a market capitalisation of $3.6 billion.
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.