AMP shareholders ripped off
An AMP adviser gets the sack for ripping-off clients.
Wednesday, June 3rd 1998, 12:00AM
A Southland-based AMP adviser has been given the sack for buying AMP shares off clients for a fraction of their value.The adviser was allegedly buying AMP shares from clients at about $5 each, which is well short of the $20 level they are expected to list at on June 15.
AMP profile and communications manager Michael O'Donnell says the company picked up the adviser's dealings through its own monitoring process.
He says AMP had been investigating this case for about three weeks, and when it confirmed the adviser had violated his contract with the company, his contract was terminated.
O'Donnell says this is the only case of its kind so far in either New Zealand or Australia.
The adviser will not face prosecution as he hadn't broken the law as such, rather he breached his contract with AMP.
O'Donnell says AMP was working to make sure no shareholders involved in this incident would be disadvantaged.
"We are getting in touch with all this person's clients directly and inviting any client who felt they might be affected to call our local area business manager directly."
AMP has identified five shareholders who have been affected by this adviser's dealings, however it was not sure how many shares were involved.
The company is not disclosing the name or location of this adviser.<
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