AMP executive 'apologises' for advice failings

AMP's group executive, advice and New Zealand used his appearance at the Royal Commission public hearing to apologise on behalf of the group for failings in the provision of financial advice.

In questioning AMP group executive, advice and New Zealand Anthony Regan, Senior Counsel Assisting Michael Hodge read out an apology that Regan included in his written testimony.

"I apologise unreservedly for the failures in respect to advice and service delivery to our clients and for the regulatory breaches discussed below," the apology read.

Hodge then questioned which regulatory breaches Regan, on behalf of AMP, was referring to.

"The various breaches of the Corporations Act that occurred as a result of these practices...I believe we accept that we have [breached the Act]," Regan said.

AMP admits to serious misconduct in RC submissions 

Asked by Hodge if this was an admission of guilt on AMP's behalf, having so far in its submissions to the Commission only acknowledged "possible" contraventions of the Corporations Act, Regan said: "No, I don't believe we've admitted those as yet."

Asked again what breaches his apology was in reference to, Regan said: "We know that we have committed breaches in relation to retaining fees on client accounts - that's a breach of our licensing conditions and that's what I'm apologising for."

Regan then conceded that AMP has failed to act honest, fairly and efficiently in relation to charging fees for no service but could not be certain whether AMP's own position was that there has been a failure.

Pushed further, Hodge questioned whether Regan even knew what he was apologising for.

Regan told Hodge he would "have to take it on notice", to which Hodge responded: "That's not how this works."

Regan finally stated: "I'm uncertain."

Asked whether the AMP board agreed to Regan's apology, he responded: "This is my witness testimony...I didn't seek their approval to make the apology."

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Read more: Royal CommissionNew ZealandCorporations ActFinancial adviceAnthony ReganMichael Hodge
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