ASIC investigating AMP exeuctives as Treasurer Scott Morrison warns they could face jail

ASIC responds to Scott Morrison’s warning that the company’s employees could face jail over their conduct.

Federal Treasurer Scott Morrison. Picture: Danny Aarons.

The corporate watchdog says it is investigating staff at wealth giant AMP over its “fees for no service” breaches as it reminds executives they could face jail time.

The Australian Securities & Investments Commission today said it “is and has been investigating AMP’s conduct”.

“ASIC has, as part of its investigation, received many thousands of documents and undertaken 18 examinations of AMP staff. ASIC is also ensuring that compensation is paid to impacted AMP clients.”

“Making false or misleading statements to ASIC can result in civil and criminal sanctions.”

“In accordance with our general policy on public comment we will not make further public statements about our investigation of these matters at this time.”

Yesterday the royal commission heard that the name of AMP chief executive Craig Meller was removed from a supposedly “independent” report that the finance giant commissioned from top law firm Clayton Utz to avoid “unnecessary attention” from the corporate regulator.

This morning Treasurer Scott Morrison warned AMP executives could face jail time.

“This type of behaviour can attract penalties which include jail time. That’s how serious these things are. I am very reassured by the fact that these matters were already being pursued by ASIC and will continue to be pursued by ASIC,” Mr Morrison said.

AMP execs could face jail

Federal Treasurer Scott Morrison said the behaviour of AMP executives was “deeply disturbing’’.

Scott Morrison has warned that AMP executives could face jail time after company representatives confessed in the banking royal commission to charging customers for services they did not receive and for misleading the corporate regulator.

The Treasurer said the behaviour of the financial services giant was “deeply disturbing” as he talked up the investigation into the company by the Australian Securities and Investments Commission.

“What has occurred here and what has been admitted to in the royal commission by AMP is deeply disturbing,” Mr Morrison said.

AMP representatives admitted the company charged customers for services they did not receive and misled the corporate regulator.

“They have said that they basically charged people for services they didn’t provide and they have admitted to statements that were misleading, to ASIC and to their own customers, and this is deeply distressing.

“This type of behaviour can attract penalties which include jail time. That’s how serious these things are. I am very reassured by the fact that these matters were already being pursued by ASIC and will continue to be pursued by ASIC.”

Mr Morrison was strongly against the banking royal commission but reluctantly agreed to establish one because of fears government MPs would cross the floor of parliament and vote in favour of one with Labor and the Greens.

Mr Morrison this morning responded to the revelations in the royal commission by talking up an existing probe into AMP by the corporate regulator.

“I can confirm that investigation has been under way for some time and that as part of that investigation ASIC has received many thousands of documents as it has undertaken a number of examinations of AMP staff,” Mr Morrison said.

AMP executive Anthony Jack Regan. Picture: Stuart McEvoy.

“ASIC is also pursuing full compensation of impacted AMP clients. ASIC takes these allegations of false or misleading statements as does the government and this is a significant aspect of the investigation.

“As you can clearly see, ASIC has been engaging closely with the royal commission on a range of matters including current and ongoing investigations.”

AMP head of investment platforms John Keating at the banking royal commission in Melbourne. Picture: Stuart McEvoy.