AMP misled financial advisors, which led their clients to invest in riskier or less profitable products. AMP has started to pay victims, but it’s not clear how big the problem is. One more blow for the wealthiest person in the world!
A report from The Age and The Sydney Morning Herald says that AMP started notifying customers who were at risk in March. There are some people who think it happened in the late part of 2018. A company called AMP told financial advisers things that were not true. As a result, clients were unaware they were investing in hazardous or underperforming funds.
Even though AMP misrated the COIN digital platform used by AMP-aligned advisors, clients got bad advice. Errors happen when data is manually entered into a computer system without being changed. This is what the company’s records say.
Correcting Mistakes
After clients repaid their debts, letters began to be sent to them. This began in March. They said that they appreciate your patience. We’ll ensure that this does not happen again. We heard from someone who said their adviser may have given them bad advice based on bad information. They say they found mistakes in the way AMP ranked the funds for your advisor.
Compensation
People who lost money on investments have been used to figure out how much each customer will get back. This is based on how a similar fund did over the same time period. Customers were also paid an extra 6% to make up for lost money. To find out how this compensation payment might affect your taxes or benefits, talk to a tax expert. The letter also told clients that they could make official complaints to AMP or the Australian Financial Complaints Authority. They could also contact them. As soon as they aren’t happy with how they’ve handled this, you should talk to them first. People at AMP can look into your complaint and decide what to do about it for you. Company found out about the problem in late 2018 and is now trying to figure out how much each customer would lose.
AMP Paid Out
AMP paid out in March to users of two systems: AMP Flexible Lifetime Investments and AMP Personalized Portfolio Service. They both help people invest for their whole lives. But, they say they had to pay $50,000 a year to ensure his innovation and rules were secure.
So, they paid to access COIN’s numerous services, including data on the company’s performance for AMP advisors. When one adviser, who spoke anonymously, said that the technology wasn’t up to par. His own subscriptions to Van Eyk and Morningstar helped him trade stocks. Because not all the things you get from AMP are good, he also said.
The former adviser claims he paid around $50,000 a year in license fees to ensure his technology and compliance. Our technology was bad, but for 10 years, the company promised us that it would get better. As time went on, the technology became more difficult.
Employees of AMP claim they have lost money due to unjust changes to long-standing policies that determine their firms’ value.
After they found out about the problem, they told the regulator and changed their processes to make sure it didn’t happen again.
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