Australia’s AMP hit by class action over insurance advice

(Reuters) – Wealth manager AMP Ltd said on Thursday it had been served with a class action over advice provided in relation to certain life and other insurance products, the second lawsuit in as many days.

Australia’s Federal Court in February ordered AMP to pay a A$5.2 million ($3.73 million) penalty for failing to prevent incorrect insurance advice by financial planners after the country’s corporate watchdog sued the firm in 2018.

AMP admitted to the case against it in May last year.

On Wednesday, some financial advisers filed a class action against the Australian wealth manager related to changes in its ‘buyer of last resort’ policy.

These class actions follow a tumultuous year for AMP after it was named in a bruising public inquiry into finance sector misconduct in 2019 where it was accused of improperly charging fees and attempting to deceive regulators.

The company said on Thursday its units AMP Financial Planning Pty Ltd and Hillross Financial Services Ltd would defend the proceedings.

AMP’s shares closed 0.6% lower.

(Reporting by Anushka Trivedi in Bengaluru; Editing by Jacqueline Wong)