Via the AFR:
AMP failed to show the “corporate will” to stop former financial planner Rommel Panganiban from churning 49 clients into new AMP insurance policies and pocketing hefty commissions, the Federal Court ruled on Wednesday.
The embattled wealth giant’s failings amounted to six breaches of the Corporations Act worth, by Justice Michael Lee’s determination, over $5 million in penalties.
The judgment is a victory for the Australian Securities and Investments Commission (ASIC), which brought the action, but comes with a caveat.
…The conduct at the heart of the case relates to “churning” – the practice of shifting clients through various insurance or financial products to earn higher commissions, a practice heavily scrutinised by the Hayne royal commission.
Hello… LIT commissions! Ban ’em.
