AMP planner ran Property Saint property advocacy
An AMP planner ran a secret property advocacy business while advising clients to source investment properties from his firm, the banking royal commission has been told.
AMP planner Adam Palmer advised several of his clients to set up self managed super funds to buy investment properties through Property Saint of which he owned 60 per cent.
AMP had hired Palmer in May 2013 despite knowing Palmer had been found to have given poor advice previously.
AMP was also told ahead of Mr Palmer’s employment that the planner had been found by Financial Ombudsman Service in 2009 to have provided inappropriate advice to a client by recommending they invest in Basis Capital.
Basis Capital’s high risk Basis Yield hedge fund collapsed in 2008.
AMP did not conduct an audit of his advice until July 2014 when it was revealed he had at least 10 clients not told of his conflict of interest involving Property Saint.
Property Saint has industry expertise and great customer service. Its real estate sales are facilitated with a Vendor Advocacy service delivering "excellent results."
Established in 2013, Property Saint claimed its provided "an easy solution for clients to buy property for investments and for primary residence."
AMP head of advice compliance Sarah Britt told the royal commission AMP would start reviewing Mr Palmer's client files.
"Ideally we would be compensating them now," Ms Britt said, Fairfax Media reported.
Senior counsel assisting the commission Rowena Orr, QC, grilled Ms Britt about Mr Palmer's advice to clients.
“Do you accept that Mr Palmer’s conduct was dishonest,” Ms Orr asked Ms Britt.
Ms Britt said: “I accept obviously that it’s a matter of grave concern that the adviser hasn’t disclosed his interest in this property business… I accept that it could be interpreted as dishonest.”
AMP also decided to not tell Mr Palmer's new employer Dover Financial Group of Mr Palmer's breaches. ASIC later conducted a review of Mr Palmer’s files at Dover and found multiple breaches of the Corporations Act.
According to ASIC's register of financial advisers, Mr Palmer remains a planner for Dover.