Australian regulator imposes extra conditions on AMP business after surveillance
SYDNEY, April 4 (Reuters) - Australia's largest listed
wealth manager, AMP Ltd, will be subjected to
additional regulator-imposed conditions when managing investment
portfolios for clients, the Australian Securities and
Investments Commission (ASIC) said on Thursday.
ASIC, which oversees the operating licences of financial
services firms, said it had imposed the conditions on the
company's financial planning business following a surveillance
It did not specify what those additional conditions were but
said they were part of an effort to improve the conduct and
compliance standards of the industry.
AMP was embroiled in accusations of deception at a
government-mandated inquiry into misconduct in the financial
sector last year.
The company subsequently lost its chairman and chief
executive officer, hemorrhaged billions of dollars in funds, and
is fighting to regain the trust of its customers.
ASIC said its surveillance of AMP included interviews with
compliance personnel and advisers, as well as reviews of files
of clients that pay AMP for so-called managed discretionary
account (MDA) services.
MDAs give financial advisers the discretion to manage
investment portfolios on behalf of clients in accordance with
agreed investment objectives.
ASIC currently requires firms providing MDA services to act
honestly and in the best interest of the client, exercise
reasonable care and diligence, maintain adequate documented
compliance records and have appropriate policies to manage
conflicts of interest.
A spokeswoman for AMP said the company was "pleased" to have
obtained approval from the regulator to continue providing MDA
services to clients, declining to say what ASIC's additional
"AMP Financial Planning has worked constructively with ASIC
and will continue to do so, as it further improves the standards
of the advice industry going forward," she said.
(Reporting by Paulina Duran in SYDNEY; Editing by Muralikumar
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