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ASIC flags deeper investigation into AMP Limited

The Australian Financial Review is reporting that corporate regulator ASIC is set to ramp up its investigation into fallen financial services giant AMP Limited (ASX: AMP). According to the paper the focus of ASIC’s investigation is AMP’s past practice of charging fees-for-no-service to clients.

Apparently an ASIC commissioner has been testifying before parliamentary committee as to how it intends to investigate AMP, with the AFR reporting that the regulator “has revealed it is working with criminal prosecutors to investigate AMP”.

This is further bad news for AMP Limited and its investors, with the group having a long road to redemption ahead of it. The stock is hovering around a 52-week low of $3.56 this afternoon despite the wider market enjoying strong gains over the second quarter of calendar year 2018.

AMP shares are unlikely to escape their downtrend until the group can decisively put its Royal Commission problems behind it and restore its reputation.

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Motley Fool contributor Tom Richardson has no position in AMP Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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