FINANCIAL PLANNING

AMP to pay $29m to settle class action

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AMP has settled a class action brought by Shine Lawyers in 2020, which claimed the firm's financial advisers breached their fiduciary and statutory duties to an estimated 100,000 clients.

The AMP commissions and insurance class action was commenced in the Federal Court of Victoria against AMP Financial Planning (AMPFP), Charter Financial Planning (Charter), Hillross Financial Services (Hillross), AMP and Resolution Life Australasia (formerly AMP Life) in 2020.

Shine Lawyers alleged the AMP advisers failed to act in clients' best interests by selling in-house life insurance products at inflated prices, thus failing to provide them with objective financial advice. It said AMP failed to implement systems and processes to ensure its authorised representatives complied with their duties to their clients.

amp settles class action for $110 million

AMP, which has since sold its financial advice and life insurance businesses, will pay $29 million to settle the matter.

"I am pleased that we have resolved another legacy legal matter as we focus on the future and on delivering for our customers and members," says AMP chief executive Alexis George.

Shine Lawyers said AMP "failed to inform their clients that they could obtain substantially equivalent or better insurance policies than the AMP life products from alternative insurers for lower premiums".

The class action was seeking compensation for excess premiums paid by group members, commissions paid on products and ongoing service fees charged to group members for services they did not receive between July 2014 to February 2021.

The settlement is subject to the finalisation and execution of a deed of settlement and approval by the Federal Court. AMP said in reaching a settlement, it makes no admission of liability.

AMP recently settled another class action brought against N.M. Superannuation, AMP Superannuation and AMP Services. The class action was brought on behalf of superannuation clients and their beneficiaries relating to fees charged to members of certain AMP superannuation funds, and the interest rates received, and fees charged, on cash-only fund options. It will pay a settlement amount of $120 million.

Shine Lawyers also filed a fresh class action against AMP in July, alleging AMP Superannuation has slugged members with excessive insurance fees.

This article first appeared in Financial Standard

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Riddhima Talwani is a journalist at Financial Standard, covering Australia's wealth management industry. She has 3.5 years' experience working in news across both Australia and India, including as a producer at ausbiz and as a financial graphics journalist at Reuters. Riddy holds a Postgraduate Diploma from the Asian College of Journalism. Connect with Riddhima Talwani on LinkedIn.
Comments
Paul Canavan
July 3, 2026 5.10pm

So, $29 million but the litigators and the litigation insurer will be requesting 'no more' than $21.75 million (this is less than their entitlements). My math is that $7.25 million across 100 000 people or an average of $72.50 per person, assuming the judge agrees to the final split. Am I making the correct assumptions?