IN BRIEF: Australian Ethical has pulled out of investments in AMP after revelations made during the Royal Commission and the annual general meeting.
Head of ethics research at Australian Ethical, Dr Stuart Palmer, said the actions of the advice business had ethical ramifications for the whole AMP group.
In a media statement AE said:
- The Royal Commission has revealed there are systemic prudential and cultural issues at AMP. There have been serious breaches of AMP’s duty to clients, including ‘”fees for no service”, failure to reprimand dishonest advisers and remediate clients, and keeping clients in expensive, inappropriate, legacy products and platforms
- AMP knowingly and deliberately misled regulators and there is sufficient evidence to show that these breaches are not isolated incidents
- Senior AMP leaders consciously chose to prioritise AMP’s short-term profit at the expense of clients’ best interests and compliance with the law. Evidence revealed during the Royal Commission demonstrates that senior executives were involved in the misconduct, despite staff voicing concerns and knowledge that their actions were in breach of their licensee duties
- The information released by AMP since the conclusion of the most recent Royal Commission hearings (including at its AGM Thursday doesn’t give Australian Ethical reason to change the above assessment of the evidence presented to the Royal Commission