The reputational fallout from AMP's financial planning division continues to spread across the wealth management giant, with AMP's income protection insurance the next financial service to be put under the spotlight by ASIC.The corporate regulator commenced proceedings yesterday against in the Federal Court over a long run of alleged failures by AMPFP to ensure its authorised financial planners acted in the best interests of their clients.In a statement lodged with the Federal Court yesterday ASIC alleged that certain AMP Financial Planning were engaged in 'rewriting conduct' - that is, advising clients to cancel existing life, disability, trauma or income protection insurance policies and take out similar replacement policies based on new applications, rather than by transfers.By advising clients to take this course of action, the financial planners stood to receive higher commissions than they would have received under a "like for like" transfer into a similar AMP insurance product, whilst at the same time exposing the clients unnecessarily to underwriting and associated risks. ASIC contended in the statement filed with the court that by 1 July 2013, AMPFP's "Planner Supervision" group knew or ought to have known that its authorised financial planners were engaging in rewriting conduct and the detriment this conduct caused to the clients. Despite this, in the period from 1 July 2013 to 30 June 2015 AMPFP failed to take reasonable steps to deal with the misconduct. In support of its allegations, ASIC stated it had "a number" of sample client files from current and former AMPFP authorised financial planners including, among others, Rommel Panganiban.He was permanently banned by ASIC from providing financial services in September 2016, with that decision affirmed on appeal by the Administrative Appeals Tribunal last year.The proceeding against AMPFP is listed for a directions hearing in Sydney on 27 July.And the pressure already built up in earlier rounds of the banking royal commission shows no sign of easing, with the regulator also stating that it will continue to "separately investigate AMP in relation to fees for no service conduct and in relation to the making of false and misleading statements to ASIC."