AMP ordered to pay $5.2m as judge lashes behaviour of financial planners

AMP has been ordered to pay $5.175 million by the Federal Court over what Justice Michael Lee has described as the “morally indefensible” conduct of its financial planners.

Financial planners within AMP were found to have engaged in re-writing – cancelling then renewing a client’s insurance policy rather than transferring the existing one and thus exposing them to higher risk – in order to obtain higher commissions.

AMP has unreservedly apologised for the conduct of its financial planners. Credit:Bloomberg

AMP first alerted the Australian Securities and Investments Commission to the issue in November 2014 after it became aware of misconduct by one of its financial planners, Rommel Panganiban.

In his judgment, Justice Lee slammed AMP’s handling of the case, claiming the report to ASIC failed to identify the planner and also failed to detail the scale of offending, which is estimated to have affected 161 clients.


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