AMP Investigated in New Class Action
11 February 2020
Leading Class Action firm, Shine Lawyers is preparing to imminently file a class action against AMP Life Limited, AMP Financial Planning Pty Ltd and two of its financial planning subsidiaries Charter Financial Planning Pty Ltd and Hillross Financial Planning Pty Ltd.
The firm alleges that AMP Financial Planning through its authorised representative and subsidiaries breached its fiduciary and statutory duties to an estimated 100,000 clients by failing to provide objective financial advice, therefore failing to act in their clients’ best interests. Shine Lawyers will further allege that AMP Life Limited was in knowing receipt of gains made by the sale of inflated insurance by the AMP financial advice licensees and their authorised representatives.
The action, funded by Woodsford Litigation Funding, will claim the advisers were employed by AMP Financial Planning subsidiaries, Charter Financial Planning and Hillross Financial Planning, and received commissions and other incentives for recommending insurance through AMP Life.
Head of Litigation & Loss Recovery, Jan Saddler said the advisers did this despite knowing their clients could obtain equivalent or better policies with lower premiums through other insurers.
“AMP has encouraged and incentivised its financial advisers to prioritise personal gain above their professional obligations. The clients, who should have been AMP’s primary concern, have been financially disadvantaged as a result,” she said.
Ms Saddler said clients slugged with excessive premiums deserve to be compensated.
“It’s unacceptable that hundreds of thousands of Australians who thought they were getting objective financial advice have instead been ripped off.
“AMP Financial Planning and its authorised representatives have breached the trust of clients who relied on their advice to make decisions about their personal insurances.”
The class action, which will be filed in the Federal Court of Australia, is open to anyone who obtained an AMP Flexible Lifetime Policy which includes death, TPD, trauma, income protection and business protection insurance through the following licensees and their authorised representatives:
AMP Financial Planning
Charter Financial Planning
Hillross Financial Services