Banking royal commission: Clayton Utz ready for ‘real story’ on AMP report

National law firm Clayton Utz ­believes the real story about its report into AMP’s wrongdoing is about to come to light.

Clayton Utz chief executive Rob Cutler says his firm’s report to AMP was not compromised.

National law firm Clayton Utz ­believes the real story about its ­independent report into AMP’s wrongdoing is about to come to light.

Sources close to the law firm, which is suffering immense damage to its reputation over its work for AMP, believe AMP is considering making a dramatic submission to the royal commission into ­financial services that could put an end to the argument that the law firm watered down its report to hide AMP’s unlawful conduct.

Such a submission, which could be made as early as today, is ­believed to have been triggered by tensions between the law firm and its client that arose after AMP told the royal commission that the ­independent report went through 25 drafts at the request of AMP.

One of those close to the author of the report, partner Nick ­Mavrakis, says he insists that none of those changes involved removing references to wrongdoing inside AMP.

The firm has grown increasingly frustrated that AMP’s admissions about repeatedly misleading the Australian Securities & Investments Commission have been conflated with testimony that the Mavrakis ­report went through 25 drafts.

Clayton Utz is not a party to the royal commission and its only ­involvement has been as legal adviser to the Commonwealth Bank.

If AMP chooses not to clarify the status of the Mavrakis report, some of the firm’s leaders have discussed whether they should take the extraordinary step of revealing their side of the affair — a move that could rupture relations with a major client.

One of those familiar with this option said it would be seriously contemplated only as a last resort in order to preserve the firm’s standing. The status of the report, and the way it was handled by AMP, is ­expected to feature in at least two of the three class actions confronting the financial services giant.

Slater & Gordon’s claim against AMP is set to examine “the conduct around the Clayton Utz ­report” by AMP, said Slaters principal Mathew Chuk.

“We definitely will be including the conduct around the Clayton Utz report as part of our claim, but it goes back much further than that,” Mr Chuk said.

This could focus attention on what was said at a meeting whose participants included former ASIC chairman Greg Medcraft and AMP general counsel Brian Salter that took place on October 16 — the day Clayton Utz gave the ­report to AMP.

Mr Salter, who was best man at Mr Medcraft’s wedding, has taken leave from his position.

Despite being pilloried over AMP’s testimony at the royal commission, Clayton Utz has so far revealed little of its side of the affair, due to concern about its ­responsibilities to a major client.

Chief executive partner Rob Cutler has rejected any suggestion the independence of the firm’s investigation of AMP’s wrong­doing and its report to the board was in any way compromised.

His statement pointed out that the report to the AMP board was independent of the AMP business unit that was under investigation.

The level of frustration inside Clayton Utz has been exacerbated by the fact the law firm ­believes the true nature of its ­report was known to ASIC.

ASIC was handed a copy of the firm’s letter of appointment on October 16 when AMP gave the corporate regulator a copy of the Clayton Utz report as well as all legal advices that are referred to in the report.