The corporate regulator has scored an early win with its tougher enforcement strategy, after AMP admitted its financial planners lined their own pockets with higher fees by shifting customers between products.
The Australian Securities and Investments Commission took AMP to the Federal Court in June, alleging certain AMP financial planners cancelled customers' existing life insurance policies and gave them new, similar replacement policies. The act of so-called ''churning'' delivered the advisers higher commissions at the same time as affected customers were left exposed to the risk of being uninsured for a period of time.
