The AMP financial services group will not face criminal prosecution three years after a royal banking commission found it had charged clients a fee for any service.
The business regulator said on Friday it had ended its investigation into the issue involving clients billed for financial advice when it did not have a financial advisor under its buyer agreements of last resort.
The Australian Securities and Investments Commission had approached the Commonwealth Director of Public Prosecutions, presenting two evidence briefs in mid-2020, with a view to laying criminal charges.
“The CDPP has now determined, based on the available evidence and weighing the relevant public interest factors, that no charges should be laid for this conduct,” ASIC said.
The allegations emerged during testimony before the Royal Commission on Financial Services in 2018.
AMP said it was happy the case was now closed.
“We apologized to all affected customers and confirm that remediation was also fully completed in 2018,” he said in a statement.
The AMP noted that at the time it had improved monitoring and reporting to protect itself against such a thing happening again.
This wasn’t the only no-service fee scandal at AMP.
He also allegedly charged life insurance fees on the accounts of thousands of deceased pension clients, the royal banking commission has learned.
This issue, which is still before the courts, claimed the jobs of the then CEO and chairman of AMP, led to a drop in stock prices and sparked shareholder class actions.