According to the statement released by the Australian wealth manager which has been struggling, it fears that any of the new regulations in the sector of finance will now distract the participants from taking the ethical steps. While doing so it took a defiant tone after the allegations on it since past few months.
However the country’s largest financial firm also said the largest financial firm of Australia has failed drastically in making sufficient efforts in order to cease charging customer fees with providing the services.
The need for law came after an inquiry from the government revealed that a number of wrongdoings are going on in the conduct of the Australia’s financial industry. The revelation more than just shocked the country. Most of the major banks have agreed upon supporting implementing any new law.
In a written response to the interim report of the Royal Commission, AMP stated that there would be only a distraction in the attention from very simple ideas if a new layer of law and regulation is added.
It further added that the more complicated the law is the more easy it is to lose sight of them.
The Royal Commission inquiry which operates independently is expected to be recommending reforms the service regulations in the sector of finance when it wraps up in the February of the next year.
AMP accepted that it charged fees from customers without providing the services. They then tampered the practice with a report that was supposed to be independent. The CEO along with the chairwoman and many directors stepped down in the wake of the revelations.
The shares of the firms dropped by 50 percent since the beginning of the year as a result of which the company lost $7.5 billion in its market worth.
Source: Reuters, TheNewYorkTimes
