AMP Limited (ASX: AMP) will soon face ASIC in court due to its part in the fees-for-no-service scandal.
The wealth & insurance business has already lost its CEO and some Board members due to the revelations of misconduct exposed during the public hearings of the Royal Commission. It also faces a class action from shareholders and a major hit to profit.
The ASIC Court Case:
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Fairfax sources say that Australian Securities and Investments Commission (ASIC) plans to make an example of AMP for lying about charging fees and suggesting a report was independent despite going through 22 drafts.
Whilst Commissioner Hayne did not make any findings against any individual of AMP, he did say that it was the culture and governance practices of AMP that was, at least in part, to blame and AMP accepted this.
AMP isn’t the only one to face legal action and potential fines.
Commonwealth Bank of Australia (ASX: CBA) was recently hit with a $700 million fine from AUSTRAC and National Australia Bank Ltd (ASX: NAB) also faces ASIC action.
The AMP Limited (ASX: AMP) share price has fallen by more than 35% over the past year, according to Google Finance.
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