Case Spotlight: AMP Limited
|Breach of continuous disclosure obligations, and misleading and deceptive conduct
|To Be Determined
|Phi Finney McDonald
Slater and Gordon
Quinn Emanuel Urquhart & Sullivan
On 16 and 17 April 2018, AMP Head of Advice, Anthony Regan, gave evidence to The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (“The Royal Commission”), during its public hearings focused on financial advice. AMP uses a tiered structure by which it certifies certain Authorized Representatives (“AR”), through its Licensee Subsidiaries, to invest client funds into AMP-approved products and investment strategies. When an AMP AR is no longer able to service their clients, the AR’s books are held under AMP to either purchase or sell to specific targets.
In his report to The Royal Commission, Mr. Regan disclosed that while a number of clients were no longer being serviced by their former AR, they we still being charged on-going service fees, regardless of the fact that those clients were not provided (and could not be provided) personal financial advice. Further evidence disclosed by Mr. Regan uncovered that this concern was raised to AMP management on 24 May 2013, and was allowed to continue. Additionally, Mr. Regan unveiled that between 27 May 2015 and 3 May 2017, AMP provided over 20 misleading statements to the ASIC regarding its fee practices, stating that they were “administrative errors.”
Following The Royal Commission hearings, on 20 April 2018, AMP released a statement apologizing to the ASX for its misconduct and stating that the CEO Craig Miller would resign effective immediately. On 30 April 2018, AMP released an additional statement announcing the departure of Chairman Catherine Brenner and General Counsel Brian Salter.
DETERMINING ELIGIBILITY & COSTS
The size of your claim depends on how the court ultimately assesses losses. In Australia, the measure of losses is not settled and courts and organizers may apply one of several methodologies to determine them.
As an initial assessment, at your request, FRT can give you an estimate of the potential size of your claim based on information provided by the organizers in conjunction with our proprietary algorithms. Additionally, with your written permission, FRT can also anonymously submit your trade data for a further loss analysis under local law.
If you wish to register now, you must submit the law firm retainer and/or litigation funding agreement. FRT will provide these documents upon request or, if authorized, may complete them on your behalf. If you have compensable damages and would like to discuss your rights with the organizers, FRT can arrange for that discussion.
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FRT has issued the following alerts to FRT Global Group Litigation clients:
- Preliminary Alert: April 30, 2018
- Full Alert: May 14, 2018
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