No criminal charges will be laid in relation to AMP Financial Planning’s alleged fees-for-no-service conduct.

The Australian Securities and Investments Commission (ASIC) has announced that its investigation into AMP Financial Planning’s conduct arising from its buyer of last resort (BOLR) policy, which was the subject of inquiry and evidence during the Financial Services Royal Commission, is now finalised.

The inquiry heard multiple claims that AMP clients had been charged for financial advice that was never provided.

There was also controversy around an arrangement known as the buyer of last resort or “BOLR” scheme, under which AMP bought up the practices of retiring financial planners if no other buyers could be found.

The 2018 banking royal commission heard that the clients of these retiring advisers were placed into a pool and charged fees without receiving advice.

ASIC probed a range of fees-for-no service conduct by entities within the AMP Limited group, including the BOLR policy conduct, which led to several briefs of evidence being referred to the Commonwealth Director of Public Prosecutions (CDPP) in 2020. 

This week, after consultation with the CDPP, the regulator dropped its investigation into these matters.

ASIC says it is still running investigations into other allegations of fees for no service conduct within the AMP Limited group.

“The CDPP has now determined, on the basis of the available evidence and weighing the relevant public interest factors, that no charges should be brought for that conduct,” ASIC said.

“ASIC has conducted a number of investigations into alleged civil contraventions by entities within the AMP Limited group.

“Civil penalty proceedings were commenced in the Federal Court in May 2021 against five companies that are, or were, part of the AMP Limited group for allegedly charging fees to deceased customers.

“ASIC does not intend to make any further comment.”

AMP has welcomed the announcements.

“AMP acknowledges the deficiencies in its historic systems and processes within the Advice business to monitor ongoing service fees in relation to BOLR,” said AMP group general counsel, David Cullen.

“In 2018, the business completed the implementation of enhanced systems and controls to improve monitoring and reporting and to protect against recurrence. We have apologised to all affected clients and confirm that remediation was also completed in full in 2018.

“With today’s confirmation that no action will be taken, we are pleased to have closure on this matter.”