Shine Lawyers is preparing to file a class action against several operations of Australian bank AMP.
These include AMP Life, AMP Financial Planning and two of its financial planning subsidiaries Charter Financial Planning and Hillross Financial Planning.
The law 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 was in “knowing receipt of gains made by the sale of inflated insurance by the AMP financial advice licensees and their authorised representatives”.
Financial disadvantaged
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.
Jan Saddler, head of litigation and loss recovery at Shine Lawyers, said: “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.
“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.”
Open
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 from 2013 onwards on the recommendation of the following licensees and their authorised representatives:
– AMP Financial Planning;
– Charter Financial Planning; and
– Hillross Financial Services.
A spokesperson from AMP said: “AMP and its advisers are committed to acting in the best interests of customers at all times and take these obligations seriously.
“While AMP has not been served with any proceedings, we understand the proposed class action relates to the distribution of life insurance policies by AMP’s adviser network.
“Based on the information included in Shine Lawyers’ media statement, AMP would vigorously defend the proceedings if served.
“AMP has clear policies and guidelines for the distribution of life insurance policies by its adviser network, which align with legal and regulatory obligations.
“We encourage any customers who have concerns to contact AMP directly or their financial adviser.”
Historical actions
In May 2019, Maurice Blackburn Lawyers submitted the “first” class action against AMP in the federal court in Melbourne.
The case refers to two superannuation fund trustees, AMP Superannuation Limited and NM Superannuation Limited, which “failed to discharge their legal duties to customers”.
The lawsuit alleges that clients were charged “uncompetitive administration fees, with high costs exceeding returns and causing investment losses in some instances”.
