AMP Limited [ASX:AMP] is now facing the Royal Commission into the banking industry, along with the Big Four banks.
The finance advice and management giant is being investigated for unsuitable financial advice, improper conduct and inappropriate fees.
AMP and affiliates (AMP Financial Planning, Hillross Financial Services and Charter Financial Planning) are facing counsel today, 16 April.
Today their share price are down by 0.42% at time of writing.
Why have the Royal commission turned their eye on financial planners?
A string of issues have plagued the financial advice sector.
These issues include financial planning scandals that involved fees with no service, unprofessional financial advice and problems with overall investment charges.
The royal commission will target AMP at its second round of hearings, which will take place sometime this week.
AMP’s head of advice Jack Regan will provide evidence before the Commission.
CBA and AMP are the main focus, both having been accused of operating on an unprofessional platform.
What has happened so far?
As of December last year, AMP and the Big Four have paid or offered their customers $215.9 million of an estimated $219.5 million of interest and refunds.
AMP and the CBA will both be case studies for problems concerning investment platform fees.
The royal commission is set to provide a final report in its investigation into misconduct in the superannuation, banking and financial services industry by 1 February 2019.
For Money Morning
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