SYDNEY, AAP – Financial regulator ASIC is taking wealth manager AMP to court for selling life insurance to dead people – one of the controversies from the banking royal commission.
AMP charged life insurance premiums and advice fees to thousands of customers between 2011 and 2019 despite being told they were dead.
ASIC is taking Federal Court action over the more than 2000 customers charged from May 2015 to August 2019.
Any breaches before May 2015 are protected from legal action. This is due to legislation limiting the time debts can be recovered.
The regulator said the conduct was unconscionable and it was seeking financial penalties.
AMP discovered the problem in 2018 and reported it to the regulator.
The company said it had repaid $5.3 million to 10,155 customer accounts for the eight-year period.
AMP has also changed the way it works to ensure no repeat.
AMP general counsel David Cullen said management would consider the allegations.
He said the company had been helping ASIC with its investigation and would continue to do so as part of legal process.
The charging of fees to dead people was one of many examples of shoddy dealings in the industry uncovered in the banking royal commission.
The commission gave its final report to parliament in 2019.
The ASIC allegations relate to five current and former AMP companies: AMP Superannuation, NM Superannuation, AMP Life, AMP Financial Planning and AMP Services.
AMP shares were higher by 3.76 per cent to $1.10 at 1140 AEST on Wednesday.