AMP defends adviser vetting process

According to ASIC data, banned financial adviser Shane Thompson joined AMP Financial Planning as an authorised representative in 2013 after his employment was terminated with NAB for forging 22 clients’ change of adviser forms, and remained with the licensee until the beginning of last year.

Thompson was convicted in the Melbourne Magistrates Court last week, having previously received a seven-year ban from ASIC in 2016. 

Responding to questions from ifa, an AMP spokesperson said the firm “completed full reference checks at the time” of Thompson’s employment and that no compliance issues were identified during his tenure, before AMP became aware of his court notice and chose to terminate his employment.

“AMP values the importance of high standards in the adviser recruitment and vetting process,” the spokesperson said.

“Our processes are reflected in the Australian Bankers’ Association’s protocol for the recruitment and termination of financial advisers, which was launched last year and ensures reciprocal information is shared between Australian licensees.”

AMP was one of a number of market participants involved in designing the ABA reference checking and information sharing protocol.

The comments follow NAB's communication to the market distancing itself from Thompson and clarifying its role in his subsequent banning. 

“In March 2013, NAB terminated Mr Thompson’s employment after we discovered he had forged clients’ signatures in an attempt to increase his own remuneration at the expense of the NAB,” NAB executive general manager wealth advice Greg Miller said in a statement.

“We expect our advisers to do the right thing at all times – by their customers and us as their employer, and we will always hold them to account.

“NAB subsequently reported Mr Thompson to ASIC, and fully supported the regulator’s investigations, and co-operated with the Commonwealth Director of Public Prosecutions.”