Australia's Federal Court has ordered wealth giant AMP to pay a A$5.175m ($3.48m) penalty after the court found that the bank had failed to prevent its financial planners from engaging in insurance churn. Financial planners within AMP were found to have engaged in "rewriting conduct", which means they cancelled and renewed clients' insurance policies instead of transferring the existing ones. This practice exposed clients to a number of significant risks, while securing higher commissions for planners. AMP first came to ASIC with the issue in November 2014, after becoming aware that...
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