Media Release
Shine Lawyers investigating shareholder class action against AMP
19 June 2018
The claims
Shine Lawyers are investigating a class action on behalf of shareholders against AMP Limited. The investigation follows recent evidence given by AMP executives in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Shine’s investigation is focused on claims that AMP engaged in misleading and deceptive conduct and false representations by lying to ASIC on multiple occasions about the manner in which its clients were charged for services that were not provided.
The firm’s class actions team are also examining allegations that AMP failed to disclose to the market material information in relation to its dealings with the regulator, ASIC, and failed to disclose material information about its risk management processes. That information, when released in the course of the Royal Commission hearings, caused the share price to drop by 10.2%.
“We encourage all shareholders who purchased shares in AMP from 30 May 2017 to 13 April 2018 to register their interest in a claim on Shine’s website,” said Class Actions Expert, Jan Saddler.
Potential breaches
“Shine Lawyers are of the view that AMP has breached a number of provisions of the Corporations Act and ASX Listing Rules. AMP executives gave evidence at the Royal Commission that their conduct fell far short of the standards expected by shareholders, investors, policyholders and community expectations generally”
“The integrity of the Australian financial markets depends upon all stakeholders engaging in conduct that is consistent with the law.”
“What we are seeing coming out of the Royal Commission is that certain stakeholders, namely the financial institutions, seem to think that they are the exception to the rule. The matters we are investigating in relation to AMP would certainly suggest that that is the position AMP took when they became aware of these issues,” said Saddler.
Background
AMP Limited (ASX: AMP) is a publically listed Australian company offering wealth management products and services. These services include financial advice which can comprise, superannuation, retirement income and managed investment advice, strategies for personal risk protection and self-managed superannuation.
AMP published its full-year accounts on 8 February 2018 which stated a profit after attributable tax of $848m, which was a significant recovery from the $344m loss recorded in 2016. This was an increase in underlying profit of 114%.
AMP and its related entities have provided three submissions to the current Banking Royal Commission.
In its submissions, AMP acknowledged possible misconduct in relation to its reporting to ASIC of its charging of fees for no service.
Mr. Regan, group executive for AMP, gave evidence 16 and 17 April 2018 in response to a series of questions that the Commission has asked in relation to misconduct concerning fees for no service.
Mr. Regan acknowledged that AMP has failed to act honestly, fairly and efficiently in relation to the charging of fees for no service. He also acknowledged there was misconduct in relation to the extent and nature of AMPs reporting to ASIC in relation to fees for no service (licensees).
The 2017 Annual Report for AMP, published on 20 March 2018 states the top 20 shareholders as owning about 62% of the company.
There are approximately one billion shares traded in the period under investigation.
Where to sign up
Shine Lawyers are encouraging all shareholders who purchased shares in AMP from 30 May 2017 to 13 April 2018 to register their interest in a claim on Shine’s website.
