The AMP Limited (ASX: AMP) share price is up more than 6% despite revealing ASIC proceedings.
AMP has acknowledged the civil proceedings brought by ASIC in the Federal Court in relation to alleged breaches concerning the deduction of life insurance premiums and advice service fees from the superannuation accounts of deceased customers.
In 2018, AMP identified issues with its processes regarding deceased customer accounts and self-reported to the regulator. This was one of the issues that was brought up and covered in the financial services royal commission.
AMP said it has taken action to change its processes and policies to address these issues and has remediated all impacted customer accounts. In total, AMP remediated 10,155 customer accounts a sum of $5.3 million for the period from 2011 to 2019, which included compensation for lost earnings.
The remediation was completed in May 2020.
AMP Group General Counsel David Cullen said: “AMP has taken this matter very seriously and we will now carefully consider the allegations raised by ASIC. We have been assisting ASIC with its investigation and will continue to engage constructively as part of the legal process.
“When we discovered the issues, we immediately moved to change our processes and systems and took action to ensure the beneficiaries of customers impacted were fully remediated. AMP apologises to all customers and beneficiaries who were impacted by this matter.”
As long as AMP has learned from these issues and has changed its culture then this can hopefully sorted out and then it can do better for clients.