AMP could lose thousands of superannuation customers to its competitors after admitting the advice it gave to switch accounts failed ASIC standards.
The majority of the 1,700 people who asked for AMP Financial Planning (AMPFP) to check their advice have been given the option to close their AMP super accounts.
They can opt to move back to their former super fund or multiple funds and have fees and charges refunded.
The exit option affects around 1500 people out of the 1700.
Some customers who requested a review had not actually received super switching advice, or had received advice but did not switch.
It is the latest in a string of developments within one of Australia's oldest companies following an enforceable undertaking (EU) with the regulator.
An ASIC investigation found disclosure problems with the way some AMP financial planners were advising customers on switching from competitors' funds.
The rectification is being offered because the documents provided to these customers when they received their advice did not meet new standards that AMP has agreed to with ASIC, AMP Financial Services managing director Craig Dunn said.
Around 35,000 current or former clients who may have had advice to move their super accounts between November 2004 and July 2006 were contacted and offered a free review.
This was five times as many than originally thought to be affected.
AMPFP has implemented mandatory training for planners, new advice and compliance standards and a new management structure as a result of the regulatory action.
AMP is the highest profile casualty to date of ASIC's crackdown on super switching advice, which has prompted industry-wide reviews.
