![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2018\/04\/rowena-orr.jpg\")
<\/a>Appearing before the Commission, AMP Head of Advice Compliance, Sarah Britt<\/strong> said AMP had allocated more resources to review client files and compensate clients if necessary but was working through a large number of cases.<\/p>\n \u201cI think historically we have underestimated the task ahead of us.\u00a0 And I think as an organisation we have to own that, and there has been a huge effort to restructure and reset the program going forward so that it is adequately resourced,\u201d Britt said.<\/p>\n Her comments were made in response to questions from Counsel Assisting the Commission, Rowena Orr<\/strong>, QC as to why the clients of two advisers had not been told they may have received inappropriate advice and might be compensated for suffering financial loss.<\/p>\n Orr was referring specifically to clients of an adviser known as Mr E and a former Charter Financial Planning authorised representative, Jennifer Coleman,\u00a0<\/strong>who both provided advice that was considered inappropriate and subject to review and audit by AMP.<\/p>\n “It’s that there are a number of advisers in the remediation program, and that certainly his [Mr E\u2019s] clients will be looked at and the customers will be remediated if they\u2019ve suffered financial loss,” Britt said.<\/p>\n “The process is that we will look at the entire book together and write out to all clients at the same time,” she said, adding this would be the same process used with up to 100 of Coleman\u2019s clients.<\/p>\n The Commission heard that Mr E\u2019s entire book of business was under review and that in one instance he provided life insurance advice, as part of a wider financial plan, which was more expensive than what was held by the clients prior to receiving the advice.<\/p>\n The advice also resulted in the client being without cover for three months and suffering loss due to exit fees as part of a rollover from a superannuation fund.<\/p>\n Coleman, meanwhile, had recommended life insurance to clients that was supposedly cheaper by around $1,000 per annum but the new premium fees were actually higher, and also failed to tell the clients that exit fees would apply to their superannuation fund from which the premiums would be drawn.<\/p>\n Coleman also failed to disclose she might\u00a0receive an activation payment for one of the products that she recommended, failed to document the scope of advice, and failed to document the couple’s needs and circumstances.<\/p>\n Britt said Coleman had ranked very low in a succession of audits and her authorisation was revoked in September 2016 and the provision of inappropriate advice was due to Coleman’s over-reliance on support staff and failure to\u00a0take overall accountability for processes and procedures.<\/p>\n Britt defended the audit process stating that it had detected problems with Coleman’s advice and “…there was a pattern of conduct and it is apparent that she wasn\u2019t capable of providing good quality advice. But AMP had the appropriate systems and processes in place to detect her and ultimately to terminate her”.<\/p>\n","protected":false},"excerpt":{"rendered":" AMP has yet to notify clients they may have received inappropriate life insurance advice as it was still reviewing the files of a number of advisers, a senior AMP executive has told the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.<\/p>\n","protected":false},"author":3,"featured_media":40647,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[4247],"class_list":["post-40626","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/40626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=40626"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/40626\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/40647"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=40626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=40626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=40626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}“The process is that we will look at the entire book together and write out to all clients at the same time”<\/h6>\n