The corporate regulator has commenced civil penalty proceedings against a group of AMP-linked companies for allegedly charging life premiums and advice fees to more than 2000 deceased customers.

A statement today from the Australian Securities and Investments Commission (ASIC) says the alleged conduct occurred from May 2015 to August 2019.

ASIC filed the proceedings yesterday in the Federal Court of Australia against AMP Superannuation, NM Superannuation Proprietary, AMP Life Limited (which is now owned by Resolution Life Group but was part of AMP when the conduct took place), AMP Financial Planning Proprietary and AMP Services.

According to the regulator, the accused entities did one or more of the following:

• deducted life insurance premiums from 2069 deceased customers’ superannuation accounts despite being notified that the customer had died;

• deducted financial advice fees from deceased customers’ superannuation accounts despite being notified that the customer had died;

• failed to ensure that a system was in place that ensured that it did not charge deceased customers;

• failed to ensure that a system was in place to manage conflicts of interest between the AMP companies’ interests in continuing to charge premiums and advice fees and members’ interests in premiums and advice fees ceasing after death and

• contravened their overarching obligations as Australian financial services licensees to act efficiently, honestly and fairly.

The AMP companies’ conduct demonstrated a system of conduct or pattern of behaviour that was, in all the circumstances, "unconscionable", ASIC says.

Their actions led to them receiving more than $500,000 in insurance premiums from the super accounts of deceased customers and more than $100,000 in advice fees.

“ASIC brings this claim in respect of 2069 deceased members affected by the retention of premiums, and 27 members affected by the retention of advice fees,” ASIC says in its concise statement filed to the court.

The corporate regulator is seeking declarations of contraventions of the ASIC Act and Corporations Act. It is also seeking pecuniary penalties and other orders to be made by the Federal Court.

The proceeding will be listed for a case management hearing on a date yet to be set.

Click here for the notice of filing.