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Forensic Accounting: AMP's Fee for No Service Scandal

   

Added on  2023-04-12

4 Pages625 Words224 Views
Forensic accounting

Royal Commission of Australia has heard that AMP has been illegally deducting fees for service
from the accounts of its customers, by which it mislead the corporate regulator. The Australian
securities investment commission has examined the conduct of AMP in connection with the fee
for no service, as evidence is raised by the Royal Commission (Hargovan, 2018).
AMP had appointed Clayton Utz for the investigation into the issue related to charging a fee
from the accounts of the customer even if no service provided by the company. After this, AMP
produces the report made by Clayton Utz to the Australian Securities and Investment
Commission as an independent report, which modulated the skill and obligation of a senior
executive of the AMP in the misconduct. Further, independence of the Clayton Utz came under
significant scrutiny in the Royal Commission (Le Mire, 2018). It has been revealed that several
emails were exchanged between the Clayton Utz and AMP. Moreover, ASIC determined that
Clayton Utz was a member of external legal penal of the AMP and was performing its services
for AMP in relation to the investigation of the fee for no service. Despite these facts, AMP and
Clayton Utz did not change their assertion and contended that report was prepared
independently, stating that the following “uncompromisingly direct 87-page review” of AMP’s
fee imposed due to no services practice.
After some time, Australian securities and investment commission has issued statement
certifying that it will continue to examine the matter related with the AMP in connection with the
fee for no service scandal and connected misleading and false statement produced to ASIC
(Michael West, 2018). The Australian securities and investment commission, is searching for the
documents of interviews held with staff of the AMP in connection to an independent report of
Clayton Utz into the fee for no service account. ASIC made the appeal to the federal court

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