The FPA has issued a statement addressing the investigation of AMP recently aired on ABC’s Four Corners program, describing fees for no service as breaching “any measure of common decency”.
In its response to the airing of Four Corners’ investigation, FPA chief executive Dante de Gori wrote in a public letter that the association “does not condone any situation where a client is charged fees for no service” or any situation in which clients are given inappropriate advice for their circumstances.
“This sort of behaviour is a breach of the FPA Code of Ethics and Professional Practice, and against any measure of common decency,” the association said.
“A professional financial planner or practice is expected to know the law, abide by the law, and put their clients’ interests first. The professional obligations that must be upheld by all financial planners who are members of the FPA are captured in the eight principles of the FPA Code of Ethics.”
The airing of the episode comes as AMP is commencing its defence against a shareholder class action, which also stemmed from revelations made before the royal commission, with plaintiffs arguing AMP did not meet its disclosure obligations to shareholders in relation to the fees for no service scandal.
“AMP confirms it will vigorously defend this and all similar proceedings,” the company said in a statement released on Monday.
“AMP denies the plaintiff’s allegations that it had information that was required to be disclosed to the market during the relevant period.”
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