The corporate watchdog has scored a big win against insurance giant AMP (ASX: AMP) in a case it brought before the Federal Court in July last year, with the court fining five subsidiaries a total of $14.5 million for charging unlawful fees on corporate-sponsored superannuation accounts.
Business News Australia reports the fine is at the upper end of expectations after the Australian Securities and Investments Commission sought a penalty of $17.5 million against the company. AMP was hoping for a $4.6 million fine.
In handing down his judgment, Federal Court Justice Mark Moshinsky has dismissed the charge against one of the AMP subsidiaries, AMP Services. The penalties were imposed on the remaining five defendants - AMP Superannuation, AMP Financial Planning, Charter Financial Planning, Hillross Financial Services and AMP Life, the website reported.
AMP Life, which is now part of the Resolution Life Group but was part of AMP when the fees were charged, took the biggest hit in today’s judgement with its share of the fine totalling $6 million.
Photo: Priscilla Du Preez on Unsplash
Read the full report here: https://www.businessnewsaustralia.com/articles/amp-hit-with--14-5m-fine-for-charging--356-000-in-unlawful-super-fees.html
The Bulletin
