Rowena Orr QC is currently providing closing statements in the royal commission’s financial advice and wealth management hearings.
Turning first to the evidence of AMP group executive, advice and NZ, Jack Regan, Ms Orr said the executive had admitted to conduct that was “unlawful and ethically and morally wrong”.
She reminded the commission that AMP has made “20 false and misleading statements in 12 communications” to ASIC, which is tantamount to breaches of both the Corporations Act and ASIC Act.
Ms Orr described AMP’s claims that Clayton Utz’s review of its BOLR policy was “independent” was “materially incorrect” and intended to deceive the regulator.
She described the conduct of AMP as “unconscionable”.
A number of the contraventions listed by Ms Orr carry criminal penalties.
“It is open to the Commissioner to find that this conduct is attributable, in least in part, to the culture [of AMP],” she concluded.
ASIC are bloody useless you are a sitting duck adviser. The whole advising industry is stuffed. Thank goodness I’m retired and out of it. Good luck ducks.
It’s a mugs game…
Hellooooo FPA are you listening? This is your member. You’re getting fees from AMP and bundling it up as member fees. Are you going to do a Sam Henderson again and take 12 months to act this time around? We’d like to hear a statement.
why are you still a member ?
the FPA is a Penis and their members – who are still members – are the littlest ones
Financial Planners will start producing SOA that are called General Advice… take a note out of an accountants book the responsibility always falls back on the clients lodging the claim to the tax office….
IT WILL
If politicians were held to the same moral and ethical standards as financial planners, they would all be in jail. Don’t even get me started on lawyers.
EXACTLY…….Yet, they are going to allow Lawyers to do a bridging course and call themselves a financial planner. Yet someone who has been doing it for years, completed the courses that were available at the time and is accredited has to go back and learn it all over again…….Unbelievable…
Only if they are an existing financial planner… Otherwise its a completely different pathway requiring an approved degree…
financial planning is officially debt.
that’s funny you mean dead ? but debt is also right as it is now a noose around your neck
Financial Planning at AMP was never alive. Financial Advisers at AMP are described as Product Salespeople.
Steven. Industry fund ??? Your comments are flawed. Clients agree to the fees and rightly expect the corresponding service. If you are indeed a planner you would appreciate the need for on going service and all that it entails.
this is fucked journalism – sensalisation.
get a vibe out of it do you Aleks..?
I’m surprised that made it through! My clean comments about the socialist nature of this witch hunt and Aleks’ ‘unbiased’ ‘journalism’ were moderated out last week! Thanks for that!
Why is this such news? No one seems to have batted an eyelid about the evidence that came out in the RC that NAB employees were accepting over the counter bribes in exchange for loans!
This newsletter would certainly be improved with some balanced journalism IFA.
Well the name of this publication is not AMP weekly. With the majority of advisers now working for AMP some balance and other opinions are always welcome. AMP have well and truly stomped on independent advice in Australia. Firms like AMP can well and truly brainwash advisers and form a cult. Hence some balance is always welcome.
Will ASIC proceed now to suspending AMP’s AFSL? In suspending a licensee in 2017 Commissioner John Price said “Failure to comply with obligations can be an indicator of a poor compliance culture. ASIC won’t hesitate to act against licensees who do not meet these important requirements.”
Won’t hesitate? We’ll see.
Oh they wont do a thing. A small fraction of their dodgy practices have been unearthed here as well. World would be a better place without them.
Most financial planners business models would not stand up to the sniff test or be morally right. Fee for service is a complete con. It’s even worse than upfront and trail commissions. Get ready for litigation FP’s. Your business case will not win against what is the best interest for the client.
Get ready for a life without advice then. Houses lost because the main income earner didn’t have enough insurance and the mortgage could not be paid because they were injured or died. Children then growing up disadvantaged twice over. Property development spruikers selling you rubbish and no one to second guess their pitch to you. Lining up at Centrelink because you didn’t know how to manage your super. Paying a ton of extra tax becase you didn’t understand what you could and could not do with your money…and more!
might well end up that way
not might, it will end up that way
Jape, you are spot-on – I’ve often thought about the consequences and you’ve encapsulated it perfectly.
Wait.
A client agreeing to pay X fee for Y service, and happily doing so for many years is more of a con?
You mean, every transaction that a person makes where they choose to use their money is a con?
What are you even talking about.
What do you do for a living, Steven?
Steven, I ask this out of a sincere concern for your time and mental well being. Is this the best forum for you to be getting your news? You obviously hate financial planners but you spend a lot of time on this site providing your opinion, which is negative – please note I am assuming that there is one Steven who does this and there is not an army of Steven’s. In the words of that great philosophiser Elsa from Frozen “let it go”. You will feel better internally and you may even find happiness.
He is right, let him have his say.
So what do you suggest. Its easy to critique anything in life. Come up with a viable alternative that passes the smell test. Otherwise, you would just be another intellectual derelict. Put up your case Steven.Then let us observe whether you have any merit. As for advisers in general, they do the correct thing by the client in most cases. Notice the word most. This applies also to Doctors, Lawyers, Real Estate Agents, Accountants, Mortgage Brokers, Teachers etc. Your wholier than thou approach and commentary is filled with nonsense. As I said put up or shut up.
Alistair, you are right in most cases, however lawyers dont do what is right for the client, they do what is right for themselves, especially when it comes to handling insurance claims. EVERY claim i have seen handled by a lawyer has been settled out of court so that the lawyer can collect his/her fee. If there had been an adviser involved, these claims would have been paid in full.
And doctors… they would like to do what is best for the patient but they are becoming slaves to the insurance companies who dont care about patients at all.
That being said, Steven is an idiot. If Fee for service is a con and commissions are just as bad, how are financial advisers supposed to get paid? Wages from the product provider? That profession would be sales person, not adviser. u muppet. Go back to your industry super fund and ask them how their insurance offering is in your best interest.
Go get a Real Insurance insurance policy and ask the sales person (on wages plus bonus) if their policies are in your best interest.