The AMP Ltd (ASX: AMP) share price has been continuing to slip throughout the day.
This comes as the Federal Court handed down its verdict regarding AMPâs plan service fee charges to its customers.
At market open, the financial services companyâs shares kicked off at $1.21 apiece.
However, news broke out about the court outcome and investors have been selling down AMP shares since.
Currently, the share is down 2.07% to $1.185.
In contrast, the S&P/ASX 200 Index (ASX: XJO) is up 1.19% following modest gains on Wall Street overnight.
What happened?
According to AMPâs release, the Federal Court of Australia handed down a $14.5 million fine to the company after it wrongly charged more than 1,500 customers.
AMP wrongly charged more than 1,500 customers in advice service fees despite knowing that these customers had no access to the paid service.
The Federal Court alleges that AMP took over $600,000 in advice service fees from customer superannuation accounts.
The hefty fee is closer to what ASIC sought which was $17.5 million compared to AMPâs suggested $4.6 million penalty.
AMP said that the fine has already been provisioned in its 30 June 2022 half-year financial statements.
About the AMP share price
Despite heading south today, the AMP share price has travelled 25% higher over the past 12 months.
On the other hand, the S&P/ASX 200 Financials (ASX: XFJ) sector is down 5% since this time last year.
AMP has a price-to-earnings (P/E) ratio of 29.33 and commands a market capitalisation of roughly $3.95 billion.
The post AMP share price slips ahead of court findings appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of September 1 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Are AMP shares worth keeping?
- Here are the 3 most heavily traded ASX 200 shares on Monday
- When it comes to AMP shares, is it time for investors to give up the ghost?
- Savings or dividends? What these 3 ASX bank shares are offering for income
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/IiNk4nx
Leave a Reply