The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) are initiating a review of unit pricing practices in the wake of an announcement in late April that AMP Life and AMP Superannuation had given enforceable undertakings.
APRA and ASIC announced the enforceable undertakings following exclusions by AMP of the tax benefit of imputation credits and other tax allowances in the unit prices of some products.
Commenting on the situation, ASIC executive director of financial services regulation Ian Johnston made clear the issue of unit pricing was being addressed.
“Unit pricing issues are of concern to regulators across the globe and APRA and ASIC will review practices in the Australian marketplace,” he says.
