Business is now moving against the banks and AMP as the royal commission uncovers more wrongdoing

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  • The ACTU has written to industry super funds asking them to reconsider their relationships with “dodgy banks”.
  • The Australian Council of Superannuation Investors has given the board of AMP to the end of this week to take some responsibility for the scandal.
  • Members of the council collectively manage $2.2 trillion in assets and own on average 10% of every ASX200 company.

The big four banks and AMP are under growing pressure from shareholders and other stakeholders following more revelations of wrongdoing revealed at the royal commission into financial services.

The unions are pushing industry funds to reconsider their relationship with the banks and a peak superannuation body wants the board of directors of AMP to take responsibility or face a shareholder backlash.

ACTU secretary Sally McManus has written to the CEOs of industry superannuation funds asking them to reconsider their relationships with “dodgy banks” in the wake of the scandals uncovered by the Banking Royal Commission.

In a letter sent to fund CEOs, McManus says the “outrageous and illegal behaviour” uncovered by the royal commission includes charging dead people for non-existent financial advice, deliberately dudding clients, ignoring and covering up fraud, leading people to financial ruin, lying to corporate regulator ASIC and charging the wrong interest rates.

Industry superannuation funds control the retirement savings of millions of Australians, worth a combined $590 billion.

“Working people in Australia gave up pay rises in order to get universal superannuation off the ground to provide access to a dignified retirement for everyone,” she says.

“The retirement savings of working people should not be used to prop organisations that house rotten, corrupt and unethical behaviours like those revealed over the past weeks at the Banking Royal Commission.”

The powerful Australian Council of Superannuation Investors (ACSI) has given the board of AMP to the end of this week to take some responsibility for the scandal.

AMP has admitted to the royal commission that it made false and misleading statements to the corporate regulator ASIC over the “fee for no service” issue.

The CEO of AMP, Craig Meller, resigned and chairman Catherine Brenner has apologised but there have been no changes to the board of directors.

Members of ACSI include 38 Australian and international asset owners and institutional investors. Collectively, they manage $2.2 trillion in assets and own on average 10% of every ASX200 company.

ACSI chief executive Louise Davidson says there needs to be accountability at board level for what’s happened.

She has given AMP until the end of the week to take responsibility.

If she doesn’t hear anything then the ACSI will consider a recommendation to vote against the directors who are up for election.

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