AMP, major banks to ready for Hayne royal commission
The show-stopping evidence aired in the first round of hearings at the Hayne Royal Commission could be trumped next week when the spotlight is turned on to the misconduct of financial advisers employed at the major banks and AMP.The royal commission has released the agenda for the second round of hearings, which will kick off next Monday with an investigation into how AMP and CBA advisers charged their clients fees for services that were never provided.Both institutions can probably expect the commission to mine forensically for more details about the practice across their businesses, with a raft of subsidiaries in the line of fire.AMP is likely to provide some respite for the major banks throughout the second round of hearings, which will also focus on the size of investment platform fees and the provision of inappropriate advice.Hillross Financial Services and Charter Financial Planning are among the AMP subsidiaries expected to furnish more details about errant service provision and fee gouging.Counsel assisting Rowena Orr QC will then grill representatives of several CBA subsidiaries - Commonwealth Financial Planning and Count Financial Planning - whose record of misconduct is already well known.National Australia Bank, which was the headline act of the first round of hearings, might again upstage its industry peers when the commission probes its wealth management executives on the subject of "improper conduct by financial advisers".The commission has also indicated that it will call ANZ to give evidence on the same topic in relation to case studies involving its Millennium 3 financial advice arm.Appearances from ASIC and the Financial Planning Association will cap off the second phase hearings, as the commission examines the effectiveness of disciplinary regimes for financial advisers.In a statement issued last night the royal commission indicated that consumers will also give evidence during the second round, with service providers who are the subject of client evidence to be informed in advance.