Australian Mutual Provident Society - s.87B undertaking

Company or individual details

  • Australian Mutual Provident Society
    008 387 371


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