The Australian Securities and Investments Commission (ASIC) will seek civil penalties and a compliance plan order against AMP Financial Planning after the group admitted its advisers churned clients through life insurance policies.

A Federal Court hearing is listed from June 19-21. By admitting churning, AMP has exposed itself to penalties of up to $1 million for each breach of the Corporations Act.

“We welcome this development and are pleased that because of AMP’s admissions, the matter will be resolved significantly sooner than if the matter was fought on liability,” ASIC Deputy Chairman Daniel Crennan said.

ASIC took AMP to court last year over advisers’ churning policies. The regulator says AMP ought to have known by July 2013 that its advisers were doing this, yet it failed to act for two years.

The regulator says advisers stood to gain more in commissions while exposing clients to unnecessary underwriting risks.