The lawyers for AMP, Australia’s biggest insurance company, have handed over internal file notes of interviews with the wealth manager’s current and former employees and officers to the local regulator, the Australian Securities and Investments Commission (Asic).
Employees of AMP were interviewed in October 2017 by the law firm Clayton Utz, as part of its independent review of fees charged by company’s financial planning division.
The report was taken into account during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry in April 2018.
Asic’s legal proceedings
The financial watchdog started Federal Court proceedings against AMP and Clayton Utz in December 2018, seeking an order forcing the law firm to produce its interview notes. The notes had been withheld from Asic by AMP.
Asic claimed that AMP were pleading that it “was subject to legal professional privilege (LPP)” which the regulator disputed.
It asked AMP to produce the interview notes using a compulsory notice under section 33 of the Asic Act in October 2018, as part of Asic’s investigation regarding AMP’s fees for no service conduct, and related false or misleading statements.
Outcome
On 7 March 2019, AMP and Clayton Utz were due to file their evidence in the proceedings, Clayton Utz produced the documents with no claim of LPP by AMP.
AMP agreed to pay Asic’s costs and the proceedings were dismissed on 8 March 2019.
Asic deputy chair, Daniel Crennan, said: “Asic is determined to take enforcement action against the major banks and financial service providers and to use all legal powers necessary to investigate the significant issue of fees for no service.
“Entities should take seriously their obligations under statutory notices issued by Asic, including producing documents in accordance with the specified timeframe and not preventing the disclosure of documents to Asic by making inappropriate LPP claims.
“These interruptions delay and frustrate Asic’s proper investigation.
“Asic is pleased that the documents have now been produced but is disappointed that the matter was not resolved sooner.”
