Australian Mutual Provident Society - s.87B undertaking

Misleading and deceptive representations in relation to the marketing of ‘80/20’ investment policies.

Undertakings given included:

• that AMP would institute a second method of valuing the policy while maintaining the old ‘adjustment’ method of valuation;
• that AMP would negotiate a settlement with policy owners who claimed they were unaware of the adjustment process when they bought the policy; and
• other provisions including:
• better statement disclosure;
• better market testing of products;
• an ongoing audit program, provision of $100 000 for a community education television program; and
• a $70 000 contribution to the Commission for assessing AMP’s settlement offer