On the final day of the Royal Commission’s second round of public hearings, senior counsel assisting Rowena Orr, QC, has recommended AMP face criminal prosecution.
AMP has been forced to apologise over the last two weeks as revelations emerged about their misconduct, which resulted in CEO Craig Meller stepping down.
The group admitted to amending details in an independent examiner’s report which was then handed over to the Australian Securities and Investments Committee (ASIC) during a review into the major banks.
Over recent weeks the Royal Commission has heard how AMP misled ASIC 20 times, denying any issues with fees for no service. In reality, customers had not been receiving the service they were paying for. In relation to this, AMP has been recommended for criminal charges under 1308 (2) and 1308 (3) of the Corporations Act.
In handing down her preliminary findings, Ms Orr recommended AMP be charged for breaching Section 64 of the ASIC Act. This comes after treasurer Scott Morrison also suggested AMP and its executives be recommended for criminal charges.
Ms Orr said it was down to the royal commission to find whether the group had made material breaches 1308 (4) 1308 (5) with at least four of the 20 statements, which could see fines of up to $1million for each breach.
During the hearing she said, “Through AMP's dealings with ASIC regarding the extent and nature of its fee for no service conduct, AMP adopted an attitude toward the regulator that was not forthright or honest, and demonstrated a deliberate attempt to mislead.”
She also suggested Commissioner Hayne find Commonwealth Bank of Australia has breached its financial licence provisions, the Corporations Act, by not reporting its issues around fees for no service to ASIC for two years.
AMP has responded to the statement. A spokesperson said, "AMP acknowledges the seriousness of the closing submissions made by Counsel Assisting the Royal Commission today.
"We are reviewing those submissions closely and will respond fully next week. The Commissioner will have AMP’s submissions in relation to these matters before making any findings."
