AMP also admitted it made 10 false statements to the Australian Securities and Investments Commission and that its scheme to provide a retirement plan for external advisers was designed to incentivise the sale of AMP’s products over those of other banks.
The wealth manager is the first case study for the banking royal commission's second round of hearings into financial advice.Representatives from the Commonwealth Bank,National Australia Bank,Westpac and ANZ Bank will all also be called to give evidence over the next two weeks.
AMP’s day lurched from bad to worse when its head of advice and New Zealand,Jack Regan,was forced to admit that he did not know what he was apologising for when he made an apology for regulatory breaches in his witness statement.
During an excruciating exchange with counsel assisting Michael Hodge,QC,Mr Regan said at various points that the apology related to AMP making misleading statements to ASIC or the breaching the wealth manager’s financial services licence or the Corporations Act.
However,AMP had made no such admissions in its submission to the royal commission.