FILE PHOTO: The logo of AMP Ltd, Australia’s biggest retail wealth manager, adorns their head office located in central Sydney, Australia, May 5, 2017. REUTERS/David Gray
SYDNEY (Reuters) – Australian wealth manager AMP Ltd on Friday said it would implement additional license conditions dictated by the prudential regulator on its pension fund units.
The Australian Prudential Regulation Authority (APRA) issued directions to AMP Superannuation Limited and N.M. Superannuation Proprietary Limited, collectively known as AMP Super, forcing it to comply with regulations governing the superannuation industry. The details were not disclosed.
Responding to the APRA statement, AMP said it would “fully implement the directions and additional conditions.”
“We have been working constructively with APRA on this matter and have already taken action on a number of the
issues raised,” AMP said in a statement.
AMP, Australia’s oldest wealth manager, is facing several class-action lawsuits filed on behalf of pension fund account holders and claiming overcharging of fees in the wake of damaging revelations of misconduct following the Royal Commission inquiry.
Problems identified by APRA included conflicts of interest, management, governance and risk management practices, breach remediation processes, addressing poor risk culture and strengthening accountability mechanisms.
The regulator’s directions also require AMP Super to renew and strengthen its board and to engage an external expert to report on remediation and compliance.
Reporting by Wayne Cole in Sydney and Aby Jose Koilparambil in Bengaluru; editing by Grant McCool