AMP~ · Advice Culture & Compliance Board Committee -Agenda AMP~ AMP LIMITED ABN 49 079 354 519 AGENDA MEETING OF THE ADVICE CULTURE & COMPLIANCE BOARD COMMITTEE TO BE HELD AT 9.00

Advice Culture & Compliance Board Committee - Agenda

AMP~

AMP LIMITED ABN 49 079 354 519

AGENDA MEETING OF THE

ADVICE CULTURE & COMPLIANCE BOARD COMMITTEE TO BE HELD AT 9.00 AM ON FRIDAY, 15 DECEMBER 2017 BOARDROOM, LEVEL 25, 33 ALFRED STREET, SYDNEY

1. Committee Matters / Chair 1.1 Committee Terms of Reference

1.1.1 GL T Sub-Committee Terms of Reference 1.2 Minutes from the 1 December 2017 meeting 1.3 Actions arising 1.4 GL T Sub-Committee decisions register

2. Work streams update 2.1 Customer remediation / Goedhart, Bargri

2.1.1 Client remediation letter and scripting / Bargri 2.1.2 Role of Customer Advocate / Howard-McDonald

2.2 Business process review / Regan 2.2.1 Report on 2015 Advice culture review / Baker Cook

2.3 Regulatory engagement / Salter, Regan, Goedhart 2.3.1 Advice Licence Management / Bargri 2.3.2 ASIC / Salter 2.3.3 APRA / Goedhart

2.4 People issues and Remuneration and Cultural review I Wardlaw 2.5 Reputation and stakeholder management / Johnston 2.6 Review of Control environment / Goedhart

CLOSE

Glossary

Board Committee members:

Catherine Brenner (Chairman) Patty Akopiantz Holly Kramer Mike Wilkins

Also attending:

Saskia Goedhart Jack Regan via TC Brian Salter Fiona Wardlaw Helen Livesey Craig Meller

Dial-in details

Australia

Entire meeting Entire meeting Entire meeting Entire meeting

Items All All All All

Apology Apology

Teleconference No.

1300303945

David Cullen Michelle Favelle Larissa Baker-Cook Elaine Campbell Pally Bargri Melanie Howard-McDonald Lachlan Johnston Peta Bissell

Conference code

537597

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2.1 - 2.3 2.1.2 2.5

Apology

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9.00 am 15 min

9.15 am 120 min

11.15 am

Moderator PIN (CQ25 Boardroom)

8735

Advice Culture & Compliance Board Committee - Committee Matters / Chair

AMP Limited Advice Culture and Compliance Committee Terms of Reference Adopted by the AMP Limited Board on 30 November 2017

1. Committee Purpose

The AMP Limited (AMP or the Company) Board has established the Advice Culture and Compliance Committee (Committee)

to oversee, on behalf of the Board, culture and compliance issues arising in the Advice business.

2. Composition and Chair

2.1 The Committee will comprise four independent directors as follows:

Catherine Brenner;

ii. Mike Wilkins;

iii. Patty Akopiantz; and

iv. Holly Kramer

2.2 The Chair of the Committee will be Catherine Brenner, or in her absence, as otherwise agreed by the Committee.

2.3 The composition and Chair of the Committee may be varied as necessary by the AMP Board, noting that any

Committee member will be an independent Director of the AMP Board.

3. Committee Role and Responsibilities

3.1 The Committee will oversee management's response to culture and compliance issues arising in the Advice business

in relation to:

the charging of service fees to clients, including during transitions between adviser's subject to the buyer of last

resort arrangements;

ii. advice provided to clients regarding insurance products; and

iii. any other issue related to the practices set out in sub-paragraphs 3.1(i) and 3.1(ii)' or broadly pertaining to culture

or compliance, as agreed by the AMP Board.

3.2 The Committee will oversee the implementation of a programme of work in relation to the matters set out in sub

paragraph 3.1, which is envisaged to include:

the remediation of, and apology to, customers affected by the conduct set out in sub-paragraph 3.1;

ii. a cultural audit, conducted by external consultants, commencing with the Advice business, and the Enterprise Risk

Management, legal and Governance and Internal Audit functions;

iii. a systems and process review of the Advice business and the second and third lines of defence, to support

improvements to governance, risk management and compliance within the Advice business;

iv. a systems and process review of the Advice business and the second and third lines of defence, to support

improvements to governance, risk management and compliance within the Advice business;

v. the engagement with ASIC, and other regulators, in re lation to the issues set out in paragraph 3.1;

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vi. the management of appropriate communication with relevant stakeholders in relation to any of the issues

identified above; and

vii. any other matters identified by the Board

3.3 The Committee will approve the terms of reference for the cultural audit and the employee conduct investigation referred to in sub-paragraphs 3.2(ii) and 3.2(iv), respectively.

4. Meetings

4.1 The Committee will meet as often as is required.

4.2 A quorum for any meeting of the Committee is two members.

4.3 All meetings will be convened and conducted, and any written resolutions will be passed, using the same procedures as those applying to the AMP Board.

4.4 The Committee Chair may invite other persons that it considers appropriate or necessary to attend its meetings.

4.5 Only Committee members will have voting rights in relation to decisions made by the Committee.

4.6 The Secretary of the Committee will be the Company Secretary of the AMP Board, or his/her designated representative.

4.7 The Group General Counsel will provide executive support to the Committee.

5. Independent Advice

5.1 The Committee collectively, and any member individually, may obtain independent professional advice at the

expense of AMP Limited, as considered necessary to assist in fulfilling their duties and responsibilities as Committee

members. The Committee Chair must approve any request for professional advice and ensure the costs are

reasonable.

5.2 Unless a conflict would otherwise prevent, the advice sought by a Committee member will be made available to the rest ofthe Committee.

6. Reporting

6.1 The Committee Chair will provide a verbal update to the AMP Board as to the matters discussed at Committee

meetings.

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CONFIDENTIAL

AMP~

GL T Advice Culture & Compliance

Review Sub-committee

Terms of Reference

Adopted by the GL T Advice Compliance Review sub-committee on 29 November 2017

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CONFIDENTIAL

1. Committee purpose

1.1 The GLT Advice Culture & Compliance Review sub-committee (GLT Committee) is an executive committee of AMP.

1.2 The GL T Committee was established following the conduct of an independent investigation by Clayton Utz.

1.3 The GLT Committee's purpose is to oversee the programme of work (as detailed below) by AMP in response to: 1.3.1 the charging of service fees to clients, including during transitions between

advisers subject to the buyer of last resort arrangements; and 1.3.2 advice provided to clients regarding insurance products, and to report, through the Managing Director and Chief Executive Officer (CEO), to the Advice Culture & Compliance Committee of the AMP Limited Board (Board Committee), on the progress of that programme of work.

1.4 It is envisaged that the programme of work will include the following: 1.4.1 the remed iation of, and apology to, customers affected by the conduct set out in

paragraph 1.3;

1.4.2 the employment disciplinary process for relevant employees;

1.4.3 a risk cultural audit of the enterprise, conducted by external consultants, beginning with the Advice business and the Legal & Governance, Enterprise Risk Management and Internal Audit functions;

1.4.4 possible improvements to governance, risk and compliance management, monitoring and supervision and oversight within the Advice business, including in relation to the 2nd and 3rd lines of review;

1.4.5 the engagement with ASIC, and other regulators, in relation to the conduct set out in paragraph 1.3;

1.4.6 managing appropriate communication with relevant stakeholders in relation to the issues identified above;

1.4.7 any implications arising from the conduct set out in paragraph 1.3 or the dealings with ASIC for the broader enterprise; and

1.4.8 any other matters identified by the Board Committee or the GL T Committee or which may arise from the matters set out in paragraphs 1.4.1 to 1.4.7 above.

2. Composition and Chair

2.1 The GL T Committee will be comprised of the : 2.1.1 CEO;

2.1.2 Group Executive, Advice and New Zealand;

2.1.3 Group Executive, People & Culture;

2.1.4 Group Chief Risk Officer;

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CONFIDENTIAL

2.1.5 Group Executive Public Affairs; and

2.1.6 Group General Counsel.

2.2 The Chair of the GL T Committee will be the CEO.

2.3 The Dispute Resolution and Regulatory Engagement team will provide secretarial services to the GL T Committee.

3. GL T Committee procedures

3.1 The GL T Committee will meet weekly or at such other times as specified by the CEO.

3.2 A meeting of the GL T Committee will be taken to be convened if at least three members are present.

3.3 The GL T Committee: 3.3.1 may invite additional members of management or others to attend meetings from

time to time;

3.3.2 will review its Terms of Reference from time to time;

3.3.3 must ensure that details of decisions and actions are recorded and kept; and

3.3.4 will report to the Board Committee from time to time as required by the Board Committee.

4. Committee operations

4.1 The Committee has the power to request and access all information applicable to the performance of its functions under these Terms of Reference that are in the possession of, or under the control of: 4.1.1 AMP Limited ;

4.1.2 any entity within the AMP Group of Companies; and

4.1.3 the auditors of any entity within the AMP Group of Companies.

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AMP LIMITED ABN 49 079354519

CHAIRMAN APPROVED MINUTES

OF THE MEETING OF THE

CONFIDENTIAL

ADVICE CULTURE AND COMPLIANCE COMMITTEE ("COMMITTEE") HELD AT 9.00AM ON FRIDAY, 1 DECEMBER 2017

BOARDROOM, LEVEL 25,33 ALFRED STREET, SYDNEY

PRESENT:

APOLOGIES:

OTHERS IN ATTENDANCE:

1. COMMITTEE MATTERS 1.1 Committee Terms of Reference

1.2 Minutes from the 21 November 2017 meeting

1.3 Actions Arising

1.3.1 2015 Deloitte Report

Catherine Brenner, Mike Wilkins, Patty Akopiantz, Holly Kramer

N/A

Craig Meller (Chief Executive Officer; Items 1 - 2.4)A David Cullen (General Counsel, Governance & Company Secretary; Full meeting) Michelle Favelle (Senior Company Secretary; Full meeting) Saskia Goedhart (Chief Risk Officer; Full meeting)A Jack Regan (Group Executive, Advice & New Zealand; Full meeting) Brian Salter (Group General Counsel; Full meeting) Fiona Wardlaw (Group Executive, People & Culture; Full meeting) Larissa Baker Cook (General Counsel, Litigation Dispute Resolution; Full meeting) Elaine Campbell (General Counsel, AMP NZ; Full meeting) Pally Bargri (CRO, Advice; Items 2.1 - 2.3) Peta Bissell (Head of Commercial Legal; Item 2.4) Helen Livesey (Group Executive, Public Affairs & Chief of Staff; Item 2.5)

A via video conference

The Committee noted that the Board had approved the Terms of Reference at the 30 November 2017 Board meeting, subject to a minor amendment in paragraph 3(b)(ii).

3/2017 The Committee RESOLVED to approve the minutes of the meeting held on 21 November 2017, subject to a minor amendment in section 3.1.

The Committee noted the schedule of actions arising from previous Board Committee meetings and the status of each item.

The Committee noted:

• the report titled 'AMP Advice & Authorised Representatives Risk Culture Assessment Consolidated Final Report' from Deloitte dated 9 October 2015, provided to the Committee in response to an action item from the previous meeting

• that the findings in the report will form part of the business

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1.4 GL T sub-committee decisions register

2. WORK STREAMS UPDATE

2.1 Customer Remediation

2.2 Business Process Review

2.2.1 Advice Governance Enhancements

2.3 Regulatory Engagement

2.3.1 ASIC

CONFIDENTIAL process review being undertaken for the Advice business

• that the Committee would have an opportunity to discuss any learnings regarding the internal dissemination and escalation

[~~~~~~~~~~~~!~~~~-~~~~-~~~~~~!~~eA~~CJ_n];-r-_~~~~L!~~~f~\~~~~~~~:~~~::~~~!'~=~!~!!~~~~~~~~j The Committee noted the decisions register and schedule of actions arising from previous GL T sub-committee meetings and the status of each item.

Pally Bargri joined the meeting.

The Committee noted the memorandum from Pally Bargri titled 'Ongoing Service Fee (OSF) Update' dated 29 November 2017.

Pally Bargri provided an update on the current client remediation program including the timetable, team resourcing, and amendments made to the Ongoing Service ASIC Breach Notifications table in response to an action item from the previous meeting .

In response to questions from the Committee, Pally Bargri provided further details in relation to definitions applied, and the classification of particular breaches set out in the Ongoing Service ASIC Breach Notifications table.

The Committee noted the update on the status of the business process review provided at the Board meeting the previous day.

The Committee noted the memorandum issued to the AMP Limited Board titled 'Update of Advice Governance Enhancements' from Pally Bargri dated 24 November 2017, and the discussion held at the Board meeting the previous day.

Pally Bargri provided an update on AMP's proposed approach to ASIC's review of financial institution oversight of advisers.

Pally Bargri joined the meeting

Redaction for Legal Privilege

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Advice Culture & Compliance Board Committee - Committee Matters I Chair

2.3.2 APRA

2.4 People Issues and Remuneration and Cultural Review

CONFIDENTIAL ."----------------------------------------------------_._._._._._._._._._._._._._._._._._._._._._._._._._._.-----------------------------". . .

i Redaction for Legal Privilege i i._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._.i

The Committee discussed recent engagement with APRA, including the discussions held the previous day between the AMP Board and senior APRA representatives.

Pally Bargri left the meeting.


Craig Meller left the meeting.


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2.4.1 Financial analysis of STI impacts on BOLR fees

2.6 Review of control environment

2.5 Reputation and stakeholder management

3. CLOSED SESSION

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Peta Bissell left the meeting.

The Committee noted the memorandum from James Georgeson titled "Assessment of potential impact of the BOLR gO-day exception period on historic STI outcomes" dated 28 November 2017.

The Committee noted the memorandum from Saskia Goedhart titled 'Review of Governance and Control Environment' dated 27 November 2017.

Saskia Goedhart provided an update on the process being undertaken to select an external consultant to conduct the control environment review.

The Committee:

• discussed the need for regular updates to the Committee on the review process to maintain a flexible approach

• noted that Mike Wilkins, as Risk Committee Chairman, would be the key Board liaison on the control environment review.

Helen Livesey joined the meeting.

The Committee noted the memorandum from Helen Livesey titled "ASIC Communications Plan" dated 27 November 2017.

Helen Livesey provided an update on the communications strategy, including in the context of the Government's announcement the previous day regarding the royal commission into the banking sector.

The Committee discussed of the communications strategy, and suggested minor enhancements to be incorporated in the next draft.

Helen Livesey left the meeting

There was no closed session held.

There being no further business the meeting closed at 11.40 am.

Signed as a correct record :

Chairman Date

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8.2


Consider conducting a review of existing capabilities and gaps in IA and ERM teams (incl. subject matter capability). Scope of work to be considered by Mike Wilkins and Geoff Roberts as RC and AC Chairs.

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03-Nov-17 3.8 Fiona Wardlaw In progress

FW is working with GL and SG to define the scope of the capability analysis to report to

a future meeting.

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Actions and Decisions GL T Advice Compliance Review sub-committee meeting

CONFIDENTIAL

Actions and Decisions

Meeting held 29 November 2017

Attendance: Craig Meller (Chair), Saskia Goedhart, Helen Livesey, Jack Regan , Brian Salter and Fiona Wardlaw

Invitee: Elaine Campbell

Item Topic Decision

1.

2.

Terms of Reference

Customer (including fee remed iation)

3. People

4. Culture

Draft of amendments to GL T sub-committee's terms of reference have been circulated

DECISION: GL T sub-committee approved Terms of Reference

No further updates at this point. Responsibility for remediation remains with Pally Bargri . Program needs to be set up effectively and to expedite remediation


BS has spoken with Catherine Brenner in relation to Alan Cameron

Meeting held with James Georgeson, and paper prepared for Board subcommittee, in relation to remuneration (STI) (qv. Board, [3.15])

FW confirmed process put in place to ensure any STI payments are held pending the outcome of the review


GL T Advice Compliance Review decisions and actions 1932579_1

2017-11-29

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Item Topic Decision

5. Business process

6. Regulatory engagement

7.

8.

Reputation and -stakeholder management

Broader control -review

Elaine Campbell commenced in her role, and will distil all of the different consultancy surveys, group all of the recommendations across the various reports into the way we run the business, and identify any gaps.

ACTION: JR to circulate previous PWC reports to sub-committee for information / update


Comments on APRA engagement strategy provided to HL

Further updated media strategy circulated, and provided to Board subcommittee

For insurance re-writing, ASIC likely to issue a statement before Christmas, but any agreement will require Court approval (noting Courts are closed in January)

ACTION: HL to prepare one-page briefing for JR on insurance re-writing

ACTION: BS to ask ASIC re likely timing of next steps and any statement to be issued by ASIC

ACTION: HL to prepare internal communications plan, and recommendations to Board sub-committee (qv. Board, [5.1])

Gordon Lefevre reviewed list of priorities and initial business units for broader control review (initially with advice business, and expanding further if required), with proposed change of preferred supplier to PWC. SG has prepared paper for Board sub-committee

SG / FW reviewed existing capabilities and gaps in Internal Audit and ERM teams (incl. subject matter capability)

Next meeting: 6 December 2017, 3.00pm

GL T Advice Compliance Review decisions and actions 1932579_1

2017-11-29

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Advice Culture & Compliance Board Committee - Work streams update

CONFIDENTIAL

MEMORANDUM FOR: Advice Compliance and Culture Committee ('ACCC')

FROM: Pally Bargri, Chief Risk Officer - Advice

SUBJECT: Ongoing Service Fees ('OSF') Remediation Update

DATE: 11 December 2017

Purpose To provide an update to the following 3 breaches (adopting numbering in OSF Breach Table):

Breach 3 known as the Additional BOLR Breach; Breach 4 known as the Terminated Advisers Breach; and Breach 5 known as the ipac Breach

People consulted in preparing the paper Lisa McClure Asset Value Protection Manager Wayne Marsh Senior Manager Fee Remediation Eric Gibson General Manager AMP Advice

Key business and governance considerations

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Addressed in paper 0'

Not relevant to paper Implications for customers Implications for capital Risks arising and their mitigants Conflicts of interest or duty arising

Discussion topics and questions Additional BOLR Breach Terminated Advisers Breach ipac Breach

Background:

AMP needs to undertake customer remediation in relation to three Ongoing Service Fee (OS F) breaches (adopting the numbering convention from the OSF Breach Table):

Breach 3 - Additional BOLR breach notified 3 May 2017 Breach 4 - Terminated Adviser breach notified 3 May 2017 Breach 5 - ipac breach notified 8 June 2017

Investigations for all breaches are continuing, to identify impacted customers and take remedial steps required to transfer policies and clients as appropriate.

Progress since last update:

3. Additional BOLR breach

The customer accounts attached to the seller IDs have been identified and instruction has been issued to product providers to transfer those accounts to the Licensee buyback IDs or to the new Adviser who is servicing the accounts. The progress currently sits at 92%, as although the transfers for all accounts in AMP product suites is complete and instructions have been issued to all external product providers, at the targeted completion date of 30 November 2017 we did not

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CONFIDENTIAL

receive confirmation from those external providers that the customer accounts have been transferred.

The handover to the Review and Remediation team remains at 15 December 2017. Remediation on these accounts will begin after Review and Remediation team has sampled tested the transfers, and scoped the remediation.

4. Terminated Advisers

The impacted customer accounts are progressively being transferred to the Licensee buyback IDs. Ongoing instructions are being issued to all product providers, and we are seeking confirmation from those providers that the transfers have been completed. This investigative and transfers phase is on track to provide the customer data to the Review and Remediation team customer data by 28 February 2018.

ipac is nearing the completion of its investigation into fees for no service on AMP customer accounts retained in generic sales IDs. The handover to the Review and Remediation team has been pushed out from 30 November 2017 to 22 December 2017 due to the requests of archived files.

In parallel, there is an investigation of customer accounts from External Product Providers where data collection has commenced. This requires full co-operation of external providers to complete a reconciliation. Assuming full co-operation, this reconciliation has a targeted completion date of 30 June 2018.

Attachments: Attachment A - 20171208_0SF Remediation Weekly Report

16

4. Terminated Advisers Investigate and remediate impacted customers identified as not having ongoing service fees removed when their AMP adviser was terminated . AS IC breach reported May 2017.

Advice Culture & Com liance Board Committee - Work streams u date

Update: R+ T still waiting on external confirmations of transfers prior to advising LVM of additional closures.

Remediation calculation and QA > ~========================:::::::

Fundi n9 request and approval > '-----------;::::====~

Customer remediation and communication

""" """ Handover > L_ __________________ ~L-__ ~~ __ ~L ________ ~=·~ ______ ~~,.~~ __ ~ __ _J~L~==2=8/=2=/ l=8====~--~~==~~~~~~~~~~~~.

Provide data to Remediation

r Update: R+ T still waiting on Scoping external confirmations of

transfers prior to advising L VM of additional closures.

> Amended handover ~ > r-________________ ~IL---------------------~~~---------------------/~--~2~2~/ l~2~/l~7~::::::~--------~~~~~~~.~~~-~~-~.~.~~.~--~~~--~~~~~--~~

Update: original 30/11 handover date pushed out as still reviewing impacted client files and in some cases have had to request archived files.

Extemal Product

Scoping

Remediation calculation and QA > ~======~

Fundi ng request and approval > ~============~

Customer remediation and communication

Identify & confirm in-scope customers - 50/0 (external data collection has commenced)

• Completed

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In progress % 0 Dependency on investigati on steps, data accuracy, product requirements

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AMP~

MEMORANDUM FOR: Advice Culture and Compliance Board Committee ('Committee')


SUBJECT: Advice Licence Management


Action required by the Committee For discussion and noting

Recommendation That the Committee notes this report and endorses the recommendation.

Discussion and topic questions Are there any concerns arising from the letters that would prompt further investigations, or discussions with ASIC.

People consulted in preparing the paper

Background and positioning This paper responds to an action arising at the Committee meeting on 1 December 2017 (Action 1.5), where the Committee requested that management "provide the Committee with examples of customer remediation correspondence (template letter and scripting) ".

Purpose The purpose of this paper is to provide the Committee examples of letters sent to customers, who were impacted by 'Breach l ' and 'Breach 2' , as described in the Ongoing Service ASIC Breach Notifications table, previously tabled at the Committee as follows:

• 'Attachment A' provides an example of a letter provided to customers, in relation to Breach 1 - the Original BOLR Breach. Additionally, call scripts that were provided to staff to respond to customer enquiries are also enclosed.

• 'Attachment B' provides examples of letters provided to customers, in relation to Breach 2 - the Horizons breach. Also attached are call scripts that were provided to respond to customer enquired.

Recommendations The Committee is asked to note this paper.

Attachments • Attachment A - Letters and scripts for Breach 1 • Attachment B - Letters and scripts for Breach 2 • Attachment C - Ongoing Service ASIC Breach Notifications table

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ATTACHMENT A:

AMP~

«date»

«customer salutation» «customer first name» «customer last name» «address line 1» «address line 2» «address line 3»

Dear «customer salutation» «customer last name» ,

Important information about a fee charged to your AMP account «product name» Account number: «account number»

We want to let you know about a service fee mistakenly charged to your account. You were previously told that your service fee would be turned off, but this didn't happen. As a result, AMP received this fee from you in error.

We're sorry for this and would like to confirm that we 've credited your account with a refund.

How we calculated your refund We've identified each date the service fee was charged in error. We've also added the missed earnings you would have received on the amount(s) by calculating «calculation information» . We've done this to make sure you 're returned to the same financial position you would have been in had the error not occurred.

We've credited your account On «date» we deposited the amount below into your account:

Account Account number

«product name» «account number»

Refundable fees Missed earning .... s __ T-"o ... ta"'l .... r ... e .... fu=n ..... du.... ... $«total

$«amount 1» $«amount 2» amount»

We're here to help If you would like more information about how your refund was calculated, or to seek a review, please write to us at:

AMP Operations - Attention Grant McPherson Reply Paid 300 PARRAMATTA NSW 2124 Email: [email protected]

If you're not satisfied with our review, you may contact the financial service industry's independent dispute resolution service. The Financial Ombudsman Service helps financial service providers and their customers resolve any differences. You can contact them using the following details:

Financial Ombudsman Service Limited GPO Box 3 MELBOURNE VIC 3001 Phone: 1300780808 (Australia) or: 61 396137366 (if calling from overseas)

AMP Financial Planning Pty Limited ABN 89 051 208327 AFSL No. 232706

W amp.com.au

Charter Financial Planning Limited ABN 35 002 976 294 AFSL No. 234665

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Hillross Financial Services Limited ABN 77 003 323 055 AFSL No. 232705

Advice Culture & Compliance Board Committee - Work streams update i·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·_·-·1

i CONTAINS CONFIDENTIAL INFORMATION i

i._._._._._._._._._._._._._._._._._._._._._._._._._._._.i

Email: [email protected]

If you have tax questions, please contact your tax professional.

For any other questions, please call «phone number» from «hours» (Sydney time) , Monday to Friday. Or email [email protected].

craig Uamton Director, Superannuation & Investment Platform Operations

2

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This Q&A is to help contact centres respond to those customers affected by the ongoing service fee remediation who call AMP for more information.

Q. What is the issue?

AMP has recently undergone an analysis of ongoing service fees and found instances where the fees have still been charged after the adviser/customer relationship has ended.

Ongoing service fees are deducted from a customer's account by way of an agreement between the customer and the adviser. The fee is charged for payment of service provided by the adviser to the customer i.e. financial advice. When the relationship between the customer and adviser no longer exists, the customer should not be charged the fees as they are no longer receiving the service.

The error has been fixed and we are now refunding these fees, plus missed earnings, to customers.

Q. How are customers being notified?

• All customers will receive notifications via their account statements.

• For remediation amounts of more than $50, customers will also receive a letter. Letters will be sent to customers on 5 February, 2016

• For remediation amounts of more than $1,000 customers will receive a letter and a phone call from AMP Direct for U2 and Unit Trust products or from the North Service Centre for North Products.

Q. How has AMP fixed the issue?

To fix the issue:

• AMP has switched off the ongoing fees for the customers no longer in an advice relationship

• All affected customers will be reimbursed all service fees charged in error (less any rebates) plus any missed earnings, restoring them to the position they would have been in had the error not occurred.

• AMP will write to those customers who are most affected on 5 February, 2016 and this may lead to phone calls in relation to the issue.

Fee remediation - Inbound call Q&A - January 201 6 Page 1 of 7

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_._._._._._._._._._._._._._._._._._._._._._._._._._._.-; i Advice Culture & Compliance Board Committee - Work streams update

i CONTAINS CONFIDENTIAL INFORMATION! ! i ! i ! i

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Q. Why did this happen?

The customer/adviser relationship will usually stop when the adviser retires or when the customer chooses to deal directly with AMP. In some instances when this has occurred an administrative error has led to the fees not being switched off and subsequently, continuing to be charged to the customer.

Q. How long has this been going on for?

For affected customers this will depend on when the agreement to have the fees deducted took effect. This can be seen using the following screen/so

For U2 - the Fee Override screen

For Trust - The Change log and Memo screens

ConttactJ Portfolio EasvPavmE!nts: RlPJRWP Pavm@ntS Inl~ chancE! loa M~o

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Fee remediation - Inbound cali Q&A - January 2016 Page 2 of 7

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For North: NOL > Search for Client> Select account> Transaction Search

Accounlsurrmary

Transaction search

6 months

Assetalocation Altransactiontypes ...

Guarantee features

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General adjJslmenl nsufancesurrmary

Q. The customer was de-linked from their adviser before 2010, can we re-calculate their refund based on when that happened?

We have reviewed service fees charged from 1 July 2010, the commencement date for 'fee for service' for the AMP advice licensees.

If customers wish to have the refund recalculated, please ask them to put their request in writing (including their name and account number) to:

AMP Operations - Attention Grant McPherson

Reply Paid 300

PARRAMATTA NSW 2124

Or email [email protected]

Q. How has the refund been calculated?

The refund includes the service fees charged to the customer's account in error plus the missed earnings on this amount. iThe eXp'lanation is in the letter the customer was sent about thei account/so

AMP.6000.0019.8041

Q. The customer would like more information about exactly how their refund was calculated and/or a review of their case

If the customer wishes to receive more information about how their refund was calculated, or to seek a review, please ask them to write to us (including their name and account number) at:


Reply Paid 300

PARRAMATTA NSW 2124


Q. Are fees being refunded even if accounts have been closed?

Yes. Affected customers that have rolled over or closed their account before the error was identified are entitled to a refund. Where investment accounts are closed, customer will receive a cheque. Where superannuation accounts are closed we will write to the customer and provide them with a form for them to return (via reply paid envelope), documenting their preferred account for the refund to be paid to. The form categories are below:

Fee remediation - Inbound call Q&A - January 2016 Page 3 of 7

23

2

AMP.6000.0019.8042


Category

Super refund for under 55 year olds

Super refund for over 55 year olds

Purpose of the form

• As the customer is not of preservation age, the refund must be rolled over in to a super account.

• The customer is asked to nominate an alternative AMP super fund, an external super fund or an SMSF for the refund to be rolled into.

• If the customer is over 55 they may be of preservation age.

• If they are, they can nominate an alternative AMP super fund, an external super fund or an SMSF for the refund to be rolled over in to, or a bank account for it to be deposited in to.

Q. How are we refunding customers?

Open accounts

• The refund will be directly credited to the customer's account and applied using their contribution profile.

Closed accounts

• For customers with closed super accounts, we will write to them and provide a form for them to return (via reply paid envelope), documenting their preferred account for the remediation amount to be paid to.

• For customers with closed investment accounts, we will write to them and provide a cheque for the amount owing on each account.

Q. What happens for deceased customers?

A small number of customers who are eligible for a refund are now deceased. Where we know this to be the case, AMP will issue the estates of these customers with an explanatory letter and a cheque for the refund .

Q. Can affected customers receive their repayment in cash?

We are not able to pay the refunds in cash.

Q. When will fees be refunded?

Refunds were credited to affected customers from:

• U2 products - 27 January, 2016 • Trust - 28 January, 2016 • North - 28 January, 2016

Q. Did the customers' money go to their adviser or did AMP have it?

Fee remediation - Inbound call Q&A - January 2016

24

Page 4 of 7


The fees that you were mistakenly charged were collected and held by AMP. No adviser received these fees at any time.

AMP.6000.0019.8043

Q. A customer has been told they are receiving the fee minus a rebate in their letter. Can we explain?

The reason they were not refunded the entire fee amount is because they also received a partial rebate on the fee that was charged. We have refunded you what was left owing from the fee taken in error less the rebate you previously received.

Q. The customer received a letter stating their remediation was dated 27 January as going into their account. The amount didn't appear until late in February and there was a discrepancy between amounts.

Due to a transaction upload error, the remediation amount was held up in the system. To account for this error, an additional 30 days of interest was added to the initial amount and the full amount was then uploaded at the end of February.

Q. There is a number appearing at the bottom of my customer letter. What does the number mean? Is that the number of customers affected?

The number in the footer on the first page of the customer letter is a unique identifier that the system produces automatically for AMPs reference. From your perspective as a customer It doesn't mean anything.

Q. What if the customer wants to lodge a formal complaint?

The normal process illustrated below should be followed to raise a complaint.


25


CJ II Centre rec Ives call from customec-

Custom r makes compla-nt

Call Cent re WIll attempt to resolve

tompl in t on phone

Call Centre tor-aise Yes ~ complaint as ~ _______ < COmplaint

resolved In CRM resolved? No

QAstom r sends written request 10f" infonmation to:

Customer wants AMP Operations _ Attention .. more detail/written ----. Grant McPherson

Information Reply Paid 300PARRAMATTA NSW2124

ca ll Centre raises complaint s

unresolved in CRM

Complaint is allocated to

servldng Team/ NOlth Servldng Team who wi ll respond to the

customer with more deta.1

Com!>laint re: actual "adVice" for which

ttleyhav be " charged ttle fee:

Complaint re : calculation/loss of

earnings te; Escalate to Grant

McPflerson Escalate to Douglas Janeczko/AdVice COmplaints team

I

AMP.6000.0019.8044


26


For U2 and Unit Trust

The applicable categorisation of the complaint in CRM should be:

:!Comms Log

Details of the complaint should be included as per normal process.

For North Products

Complaints to be raised in Bluedoor system as per normal process as Complaints: Fees and Charges\Plan conditions

What if the customer is not satisfied with the review or resolution attempt?

AMP.6000.0019.8045

If a customer is not satisfied with the review or complaints process, they may contact the Financial Ombudsman Service. They can be contacted at:

Financial Ombudsman Service Limited

GPO Box 3

MELBOURNE VIC 3001

Calling from Australia: 1300 78 08 08

Calling from overseas: 61 396137366

Or [email protected]


27

AMP.6000.0019.8046


This outbound call script is for contact centres to use when calling customers affected by the fee remediation.

Section 1: Call script

Welcome message and intro

Operator: Hi, may I please speak with <customer name>? This is <name> calling on behalf of AMP. We have a refund for you, have you got a minute for me to explain?

Customer response YES

Operator: We want to let you know about a refund you are receiving from us. Some fees were charged in error to your <account type>This happened due to an administrative error, which has now been fixed. We want to apologise for the mistake.

To ensure you're in the same financial position you would have been in, had this error not occurred , we 've refunded the fees charged in error plus any missed earnings on this amount.

We've also sent you a letter, which you should receive shortly. The letter will confirm the fees charged in error, and the repayment amount including missed earnings.

Customer response NO

Operator: Ok, I am ringing to talk about a refund you are receiving from us It is important but not urgent that we speak so if it's ok with you I'll call you back. When would be a good time for me to call? And what number would be best?

(take details and arrange call back)

Thanks for your time, I'll call you back.

Have a great day. (End call)

Section 2: Possible customer questions I responses

When did you refund the money?

The money was recently refunded back in to your account. And on 5 February, 2016 we will send/sent a letter explaining the error and confirming the refund . You should get this letter soon .

Fee remediation - outbound call script - January 201 6 Page 11 of 9

28

AMP.6000.0019.8047


I don't remember ever agreeing to pay an advice fee in the beginning?

On <insert date> you entered into an ongoing service agreement with <insert adviser name>, and you began to pay an ongoing service fee of <insert $amount>.

Your advice relationship then changed to be a direct relationship with AMP. At this time our administrative systems did not switch off the service fee being charged to you, which was an error on our behalf. We're now repaying you this amount plus any missed earnings.

Between what dates were the fees deducted? The fees were deducted between <insert first date fee> and <insert last date fee>. During this time is when the administrative error occurred whereby the service fee being charged to you were not switched off.

(Please refer to the customer call spreadsheet where there are 2 columns referring to the date of the, first fee. and the date of the last fee):

Why did this happen to me?

Due to an administrative error, when your relationship changed from being with an adviser to being direct with AMP your service fees were not switched off. This was an error in our administrative system and has now been fixed. Only a small proportion of AMP customers have been affected.

How long have you been charging me this fee for?

In your case we have found the service fee charged to your account in error occurred between <insert date> and <insert date>. However, we want to let you know, so that you are not financially disadvantaged in any way we will be repaying you any fees charged in error plus missed earnings on that amount.

How did you calculate the refund amount?

Service fees charged to your account in error amounted to <insert dollar amount>. The total amount we're crediting your account is <insert dollar amount> . This has been calculated by adding the service fees charged in error and missed earnings.

(Only if the customer asks for more information about how their fees were calculated lease refer to the table "n the ap/?endix

I was de-linked from my adviser before 2010, can you re-calculate my refund based on when that happened? We have reviewed service fees charged from 1 July 2010, the commencement date for 'fee for service' for the

AMP advice licensees.

If you wish to have your refund recalculated, or seek a review, please write to us (including your name and

account number) at:


Reply Paid 300

PARRAMATTA NSW 2124


I would like more information about exactly how the refund has been calculated We can provide that for you but we need to ask you to put your request in writing. Please write to us (including your name and account number) at:


Reply Paid 300

Fee remediation - outbound call script - January 2016 Page 12 of 9

29

AMP.6000.0019.8048


PARRAMATTA NSW 2124


What if I am not satisfied with the review If you still have concerns once you receive the review from AMP you may contact the Financial Ombudsman Service who helps financial service industry providers and their customers to resolve any concerns. They can be contacted at:

Financial Ombudsman Service Limited GPO Box 3 MELBOURNE VIC 3001

Calling from Australia: 1300 78 08 08 Calling from overseas: 61 396137366


Will this impact my Centrelink payments and are there any tax implications for me?

We're unable to provide advice on tax or Centrelink payments. So we always recommend our customers seek independent advice.

Will you pay for me to see my tax professional/accountant about this matter?

Please send a written request together with proof of the cost incurred (by way of an invoice from your accountant/tax specialist) .

Please send your request and proof to:

AMP Operations - Attention Grant McPherson Reply Paid 300 PARRAMATTA NSW 2124

Or email : [email protected]

Closed accounts: my account was closed years ago, why are you contacting me now?

Even though your account is closed we still want to ensure that you 're fully aware of the service fees that were incorrectly charged to you, as well as the repayment we will make to you . We will not make any changes to the closure of your account. You will shortly receive a letter that clearly explains the repayment being made to you. For investment accounts, you will receive a cheque and for superannuation accounts we will provide a form for you to nominate your preferred payment method.

I'd like to update my details/change my investment details etc.

That's easy. I can do that for you right now.

Can I get the repayment in cash?

No, we aren't able to make payments in cash.

For open superannuation accounts, we will return the money back into the account.

For closed investment accounts, you will receive the refund by cheque which you can then take to your bank and deposit into an account of your choice.

For closed superannuation accounts, we must, by law, make the payment into another super account, unless you are of preservation age, in which case you can elect to have the payment made to your bank account. Just select your preferred payment method on the form that will be enclosed with the letter and return it to us in the reply paid envelope


30


I never agreed to pay the fee

Our records show an advice relationship was initiated where you entered into an ongoing service arrangement, with fees associated. However, if you want us to we can investigate this for you .

Who has had the fees all this time?

The fees that you were mistakenly charged were collected and held by AMP. Your adviser did not have access to these fees at any time.

AMP.6000.0019.8049


31

AMP.6000.0019.8050


Appendix

How we calculated your refund We've identified each date the service fee was charged in error. We've also added the missed earnings you would have received on the amount(s) by calculating «insert tailored information about how the missed earnings were ca lcu lated» . We've done this to make sure you 're returned to the same financial position you would have been in had the error not occurred.

I Fee deduction scenario Refund method

AMP Wrap Services (exited customers)

• Fees deducted from cash account and there is no requirement for maintaining a target balance

• Non-super o Generations Investment portfolio o iAccess Investment o Investment Services o North Investment o Personalised Portfolio o PortfolioCare - eWrap Investment account o Wealthview - Cash account o Wealthview - eWrap investment account

• Fees deducted from cash account with target cash balance or from underlying investments

• Super o Generations Personal Pension o Generations Personal Super o iAccess Personal Pension o iAccess Personal Super o North Personal Pension o North Personal Superannuation o Pension Service o Portfolio Elements Pension account o Portfolio Elements Super account o PortfolioCare - eWrap Super account o Summit Personal Pension o Summit Personal Super o Super Service Employee account o Super Service Personal account o Wealthview - eWrap Pension account o Wealthview - eWrap Term Pension account o Wealthview - eWrap Super account

We've identified each date the service fee was charged in error. We've also added the missed earnings you would have received on the amount(s) by calculating the daily cash earnings on each fee collected , from the date the fee was charged in error, to the date your refund was paid .

We've identified each date the service fee was charged in error. We've also added the missed earnings you would have received on the amount(s) by calculating the daily cash earnings on each fee collected , from the date the fee was charged in error, to the date your refund was paid .

Fee deduction scenario Refund method

AMP Wrap Services (deceased customers)

• Fees deducted from cash account and there is no requirement for maintaining a target balance

• Non-super o Generations Investment portfolio o iAccess Investment o Investment Services o North Investment o Personalised Portfolio o PortfolioCare - eWrap Investment account o Wealthview - Cash account o Wealthview - eWrap investment account

Fee remediation - outbound call script - January 2016

We've identified each date the service fee was charged in error. We've also added the missed earnings that would have been received on the amount(s) by calculating the daily cash earnings on each fee collected, from the date the fee was charged in error, to the date the refund was paid .

Page 15 of 9

32

AMP.6000.0019.8051



• Fees deducted from cash account with target We've identified each date the service fee was charged cash balance or from underlying investments in error. We've also added the missed earnings that

Super would have been received on the amount(s) by

• calculating the daily cash earnings on each fee collected , 0 Generations Personal Pension from the date the fee was charged in error, to the date 0 Generations Personal Super the refund was paid. 0 iAccess Personal Pension 0 iAccess Personal Super 0 North Personal Pension 0 North Personal Superannuation 0 Pension Service 0 Portfolio Elements Pension account 0 Portfolio Elements Super account 0 PortfolioCare - eWrap Super account 0 Summit Personal Pension 0 Summit Personal Super 0 Super Service Employee account 0 Super Service Personal account 0 Wealthview - eWrap Pension account 0 Wealthview - eWrap Term Pension account 0 Wealthview - eWrap Super account

AMP Unitised Products (active customers)

• Still invested in the investment option where We've identified each date the service fee was charged fees have been deducted in error. We've also added the missed earnings you

Non-super would have received on the amount(s) by calculating the

• average daily investment earnings on each fee collected, 0 AMP Capital Investment from the date the fee was charged in error, to the date 0 AMP Flexible Lifetime Investment your refund was paid . 0 AMP Flexible Lifetime Investments series 2

• Still invested in the investment option where We've identified each date the service fee was charged fees have been deducted in error. We've also added the missed earnings you

Super would have received on the amount(s) by calculating the

• average daily investment earnings on each fee collected , 0 AMP Flexible Lifetime Super from the date the fee was charged in error, to the date 0 AMP Flexible Super - Retirement account your refund was paid . 0 AMP Flexible Super - Super account 0 Flexible Lifetime - Allocated Pension 0 Flexible Lifetime - Term Pension 0 SignatureSuper 0 SignatureSuper Allocated Pension


• Invested in insurance bonds

• Non-super o AMP Growth Bond

AMP Unitised Products (exited customers)

• No longer with AMP but stayed invested in the option from which fees were deducted through

Fee remediation - outbound call script - January 2016

We've identified each date the service fee was charged in error. We've also added the missed earnings you would have received on the amount(s) by calculating the average daily investment earnings on each fee collected, from the date the fee was charged in error, to the date your refund was paid .

This refund includes the 30% tax on investment earnings in your Bond .

We've identified each date the service fee was charged in error. We've also added the missed earnings you

Page 16 of 9

33

AMP.6000.0019.8052


Fee deduction scenario Refund method

until exit. would have received on the amount(s) by calculating;

• Non-super ± the investment return of your investment option , from 0 AMP Capital Investment the date the fee was charged in error to the date of 0 AMP Flexible Lifetime Investment exit, plus

0 AMP Flexible Lifetime Investments series 2 ± the daily interest on each amount, from the date of exit to the date your refund was paid.

• No longer with AMP but stayed invested in the We've identified each date the service fee was charged option from which fees were deducted through in error. We've also added the missed earnings you until exit. would have received on the amount(s) by calculating ;

• Super ± the investment return of your investment option , from 0 AMP Flexible Lifetime Super the date the fee was charged in error to the date of

0 AMP Flexible Super - Retirement account exit, plus

0 AMP Flexible Super - Super account ± the daily interest on each amount, from the date of 0 Flexible Lifetime - Allocated Pension exit to the date your refund was paid . 0 Flexible Lifetime - Term Pension 0 SignatureSuper 0 SignatureSuper Allocated Pension

• Invested in insurance bonds We've identified each date the service fee was charged

• Non-super in error. We've also added the missed earnings you would have received on the amount(s) by calculating;

0 AMP Growth Bond ± the investment return of your investment option, from

the date the fee was charged in error to the date of exit, plus

± the daily interest on each amount, from the date of exit to the date your refund was paid.

This refund includes the 30% tax on investment earnings in your Bond.

AMP Unitised Products (deceased customers)

• No longer with AMP but stayed invested in the We've identified each date the service fee was charged option from which fees were deducted through in error. We've also added the missed earnings that until exit. would have been received on the amount(s) by

• Non-super calculating ;

0 AMP Capital Investment ± the investment return of the investment option , from

0 AMP Flexible Lifetime Investment the date the fee was charged in error to the date of

0 AMP Flexible Lifetime Investments series 2 exit, plus

± the daily interest on each amount, from the date of exit to the date the refund was paid.

• No longer with AMP but stayed invested in the We've identified each date the service fee was charged option from which fees were deducted through in error. We've also added the missed earnings that until exit. would have been received on the amount(s) by

• Super calculating ;

0 AMP Flexible Lifetime Super ± the investment return of the investment option , from

0 AMP Flexible Super - Retirement account the date the fee was charged in error to the date of

0 AMP Flexible Super - Super account exit, plus

0 Flexible Lifetime - Allocated Pension ± the daily interest on each amount, from the date of 0 Flexible Lifetime - Term Pension exit to the date the refund was paid. 0 SignatureSuper 0 SignatureSuper Allocated Pension


34

AMP.6000.0019.8053



• Invested in insurance bonds We've identified each date the service fee was charged

• Non-super in error. We've also added the missed earnings the would have been received on the amount(s) by

0 AMP Growth Bond calculating ;

± the investment return of the investment option , from the date the fee was charged in error to the date of exit, plus

± the daily interest on each amount, from the date of exit to the date the refund was paid.

This refund includes the 30% tax on investment earnings

in the Bond.

Switched customers

• When either an active or exited customer has We've identified each date the service fee was charged fully switched from the investment option in error. We've also added the missed earnings you where fees have been deducted to another would have received on the amount(s) by calculating the investment option. highest investment return of all investment options linked

• Non-super to your account, from the date the fee was charged in 0 AMP Capital Investment error to the date your refund was paid. 0 AMP Flexible Lifetime Investment 0 AMP Flexible Lifetime Investments series 2

• When either an active or exited customer has We've identified each date the service fee was charged in

fully switched from the investment option error. We've also added the missed earnings you would

where fees have been deducted to another have received on the amount(s) by calculating the

investment option. highest investment return of all investment options linked

• Super to your account, from the date the fee was charged in

0 AMP Flexible Lifetime Super error to the date your refund was paid.

0 AMP Flexible Super - Retirement account 0 AMP Flexible Super - Super account 0 Flexible Lifetime - Allocated Pension 0 Flexible Lifetime - Term Pension 0 SignatureSuper 0 SignatureSuper Allocated Pension

Closed option switch customers


switched from a closed investment option error. We've also added the missed earnings you would

where fees had been deducted to another have received on the amount(s) by calculating the


• Non-super to your account, from the date the fee was charged in

0 AMP Capital Investment error to the date your refund was paid.

0 AMP Flexible Lifetime Investment 0 AMP Flexible Lifetime Investments series 2


switched from a closed investment option error. We've also added the missed earnings you would

where fees had been deducted to another have received on the amount(s) by calculating the


• Super to your account, from the date the fee was charged in

0 AMP Flexible Lifetime Super error to the date your refund was paid.

0 AMP Flexible Super - Retirement account


35

AMP.6000.0019.8054



0 AMP Flexible Super - Super account 0 Flexible Lifetime - Allocated Pension 0 Flexible Lifetime - Term Pension 0 SignatureSuper 0 SignatureSuper Allocated Pension

AMP Unitised Products (customers receiving rebates)

Active accounts We've identified each date the service fee was charged

Still invested in the investment option where in error. We've also added the missed earnings you

• would have received on the amount(s) by calculating the fees have been deducted average daily investment earnings on each fee collected

• Super (less rebates provided) , from the date the fee was

0 AMP Flexible Lifetime Super charged in error, to the date your refund was paid .

0 AMP Flexible Super - Retirement account 0 AMP Flexible Super - Super account 0 Flexible Lifetime - Allocated Pension 0 Flexible Lifetime - Term Pension

0 SignatureSuper

0 SignatureSuper Allocated Pension

Closed accounts We've identified each date the service fee was charged

No longer with AMP but stayed invested in the in error. We've also added the missed earnings you

• would have received on the amount(s) by calculating; option from which fees were deducted through until exit. ± the investment return of your investment option (less

Super rebates provided), from the date the fee was charged

• in error to the date of exit, plus 0 AMP Flexible Lifetime Super 0 AMP Flexible Super - Retirement account ± the daily interest on each amount, from the date of

0 AMP Flexible Super - Super account exit to the date your refund was paid.

0 Flexible Lifetime - Allocated Pension 0 Flexible Lifetime - Term Pension

0 SignatureSuper

0 SignatureSuper Allocated Pension


36

AMP.6000.0019.8055

r------------------------------l

i CONTAINS CONFIDENTIAL INFORMATION!

i i


i._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._1 ATTACHMENT B:

AMP~ Your contacts

13 Februa ry 2017 [email protected]

w amp.cam.au

1111111111111111111111111111111111111111111111111111111111111111111 T 1300 069 770

Your details

Dear

Important information about a fee charged to your AMP account Flexible Lifetime Investment - Closed account

We wa nt to let you know about a service fee charged to your closed account by AMP Horizons Fina ncial Group, a division of AMP Financial Planning pty Limited. An issue in our processes means it is possible that you did not receive some or all of the agreed service(s). AMP has made the decision to provide you with a refund for all service fees charged to you by AMP Horizons Financial Group. These fees have now also been turned off.

Details about your refund We have enclosed a refund cheque for the following amount:

_A...;.cc'-'o-'-u_nt'--______________ Account number Refundable fees Missed earnings

_F_le_x_ib_le_L_if_e_ti_m_e_l_nv_e_st_m_en_t_________ $31.86 $ 3.18

Total refund

$35.04

How we calculated your refund We've identified each service fee charged to your account by AMP Horizons Financial Group, which commenced from January 2008 to December 2016. We have added an allowance for missed earnings you would have received on those fee(s) for the active period. For the exited period we have also calculated missed earnings by applying the daily interest on each identified fee.

We're here to help If you would like more information about how your refund was calculated, or to see k a review of thi s refund , please write to us at:


[email protected]

AMP Financial Planning Pty Limited ABN 89 051 208 327, AFSL No. 232706

W amp.cam.au

37

,._._._._._._._._._._._._._._._._._._._._._._._._._._.~

i ! i ! i !

! ~ ! CONTAINS CONFIDENTIAL INFORMATION i


i ! i ! i !

! ~ i_._._._._._._._._._._._._._._._._._._._._._._._._._._!

If you're not satisfied with our review, you may contact one of the financial service industry's independent dispute resolution services. One of these is the Financial Ombudsman Service which helps financial service providers and their customers resolve any differences. You ca n contact them using the following details:

Financial Ombudsman Service Limited GPO Box 3 MELBOURNE VIC 3001 Phone: 1300780808 (Australia) or: +61 3 9613 7366 (if calling from overseas) Email: [email protected]


AMP.6000.0019.8056

Shou Id you req u i re a review of you r recom mended strategy or fu rther advice, please ca II us on 1300 069 770 from 8:30am - 5:00pm (Sydney time), Monday to Friday. Or email [email protected].

Yours sincerely,

Cristian Zanetti Head of Financial Planning, AMP Horizons Financial Group

AMP Financial Planning pty Limited ABN 89 051 208 327, AFSL No. 232706

W amp.com.au

38

AMP.6000.0019.8057

I-::::~::-:::'::::':~:':::~::::-I , !


L._._._._._._._._._._._._._._._._._._._._._._._._._._._._.J

ATTACHMENT B:

June 09,2017

Dear Mr

Important information about a fee charged to you Fee For Service

Your contacts

[email protected]

W amp.com.au

T 1300 069 770

Your details

ACCOUNT NAME

We want to let you know about a service fee charged to you by AMP Horizons Financial Group, a division of AMP Financial Planning Pty Limited. An issue in our processes means it is possible that you did not receive some or all of the agreed service(s). AMP has made the decision to provide you with a refund for all service fees charged to you by AMP Horizons Financial Group.

We've credited your account On April21, 2017 we have deposited the amount below into your nominated bank account:

Account Refundable fees Missed Earnings Total refund

Fee For Service $333.30 $20.74 $354.04 Fee For Service $133.32 $7.82 $141.14

We've identified each service fee charged to you by Horizons Financial Group, which commenced from January 2008 to December 2016. We have added an allowance for missed earnings you likely would have received on those fees by daily compounding the 90 day Bank Bill Swap (BBSW) rate on each fee collected

We're here to help If you would like more information about how your refund was calculated, or to seek a review of this refund, please write to us at:

AMP Operations - Attention Grant McPherson Reply Paid 300 PARRAMATIA NSW 2124 Email: [email protected] Phone:

If you're not satisfied with our review, you may contact one of the financial service industry's independent dispute resolution services. One of these is the Financial Ombudsman Service which

AMP Financial Planning Pty limited

ABN 89 051 208 327

AFSL No. 232706

W amp.com.au

Charter Financial Planning Limited ABN 35 002 976 294

AFSL No. 234665

39

Hillross Financial Services Limited ABN 77 003 323 055

AFSL No. 232705


CONTAINS CONFIDENTIAL INFORMATION

helps financial service providers and their customers resolve any differences. You can contact them using the following details:

Financial Ombudsman Service Limited

GPO Box 3

MELBOURNE VIC 3001

Phone: 1300780808 (Australia) or: 6139613 7366 (if calling from overseas)

Email: [email protected]


Should you require a review of your recommended strategy or further advice, please call us on 1300069770 from 8:30am - 5:00pm (Sydney time), Monday to Friday. Or email us at [email protected].

Yours sincerely,

Cristian Zanetti Head of Financial Planning, AMP Horizons Financial Group

AMP Financial Planning Pty limited ABN 89 051 208 327

AFSL No. 232706

Charter Financial Planning Limited ABN 35 002 976 294

AFSL No. 234665

40

Hillross Financial Services Limited ABN 77 003 323 055

AFSL No. 232705

AMP.6000.0019.8058


This Q&A is to help contact centres respond to those customers affected by the ongoing service fee remediation who call AMP for more information.

Q. What is the issue?

AMP.6000.0019.8059

AMP Horizons Financial Group has recently undergone an analysis of ongoing service fees and found there has been a breakdown in our processes. This has meant that we have been unable to determine whether or not services were being delivered for the fees that were being charged to customers.

Ongoing service fees are deducted from a customer's account by way of an agreement between the customer and the adviser. The fee is charged for payment of service provided by the adviser to the customer i.e. financial advice.

The error has been fixed and we are now refunding all fees charged to customers, plus missed earnings, regardless of whether or not the service was delivered to so one is in any way disadvantaged.

Q. How are customers being notified?

• All customers will receive notifications via their account statements.

• For remediation amounts for active accounts of more than $50, customers will also receive a letter. Remediation of any amount for a closed account will see the customers receive a letter. Letters will be sent to customers on 13 February, 2017

• For remediation amounts of more than $1,000 for an active account, customers will receive a letter and a phone call from AMP Direct for U2 and Unit Trust products or from the North Service Centre for North Products.

Q. How has AMP fixed the issue?

To fix the issue:

• AMP Horizons Financial Group has switched off the ongoing fees for the customers still in an advice relationship with a Horizons adviser

• All affected customers will be reimbursed all service fees charged plus any missed earnings, to ensure customers are in no way disadvantaged.

Horizons Fee remediation - Inbound ca ll Q&A - January 2017 Page 1 of 5

41

AMP.6000.0019.8060

: Advice Culture & Compliance Board Committee - Work streams update ! CONTAINS CONFIDENTIAL INFORMATION i ; ; ;

! I L._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._.i

• AMP will write to those customers who are most affected on 13 February, 2017 and this may lead to phone calls in relation to the issue.

Q. Why did this happen?

A breakdown in our processes meant that we were unable to determine whether a customer received the services they were paying ongoing service fees for. Due to this breakdown, AMP has decided to refund all service fees charged regardless of whether or not a service was delivered.

Q. How long has this been going on for?

For affected customers this will depend on when the client's Agreed Ongoing Service Arrangement took effect.. This can be seen using the following screen/so The refunds are being implemented to 1 January 2008 to present, however for each customer their fee period will differ but will be within this range.

For U2 - the Fee Override screen

For Trust - The Change log and Memo screens


42

,._._._._._._._._._._._._._._._._._._._._._._._._._._.-.-.-.-.~

i ! i ! i !

! i Advice Culture & Compliance Board Committee - Work streams update ! CONTAINS CONFIDENTIAL INFORMATION ; ; ; ! , ! i._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._.J

For North : NOL > Search for Client> Select account> Transaction Search

Accountsunvnary

Maingaddress

Accountballnce

Assetalocation

Cap~aJgalldelaiis

nvestmentilstructions

RegullrSlvllgspian

nSLiranceSLlnvnary

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select Date range

select Transaction Type

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I:OlIiI 110912015

6 months

Casllaccounl

AI transaction types •

-Closing Balance

1310812015 I General AdJ,Jstment I Genera,adJ,Jstment

Q. How has the refund been calculated?

. 1

I "" LliiIillIiW~

51 42.70

15142.70

The refund includes the service fees charged to the customer's account in error plus the missed earnings on this amount. iThe exp-Ianation is in the letter the customer was sent about thei account/so

AMP.6000.0019.8061

Q. The customer would like more information about exactly how their refund was calculated and/or a review of their case

If the customer wishes to receive more information about how their refund was calculated, or to seek a review, please ask them to write to us (including their name and account number) at:


Reply Paid 300

PARRAMATTA NSW 2124


Horizons Fee remed iation - Inbound ca ll Q&A - January 2017

43

Page 3 of 5

AMP.6000.0019.8062


Q. Are fees being refunded even if accounts have been closed?

Yes. Affected customers that have rolled over or closed their account before the error was identified are entitled to a refund . Where investment accounts are closed, customer will receive a cheque. Where superannuation accounts are closed we will write to the customer and provide them with a form for them to return (via reply paid envelope), documenting their preferred account for the refund to be paid to.

Q. How are we refunding customers?

Open accounts

• The refund will be directly credited to the customer's account and applied using their contribution profile.

Closed accounts

• For customers with closed super accounts, we will write to them and provide a form for them to return (via reply paid envelope), documenting their preferred account for the remediation amount to be paid to.

• For customers with closed investment accounts, we will write to them and provide a cheque for the amount owing on each account.

Q. What happens for deceased customers?

A small number of customers who are eligible for a refund are now deceased. Where we know this to be the case, AMP will issue the estates of these customers with an explanatory letter and a cheque for the refund.

Q. Can affected customers receive their repayment in cash?

We are not able to pay the refunds in cash.

Q. When will fees be refunded?

Refunds were credited to affected customers from:

• U2 products - 6 February, 2017 • Trust - 6 February, 2017 • North - 6 February, 2017

Q. Did the customers' money go to their adviser or did AMP have it?

The fees that were mistakenly charged were collected and held by AMP Horizons Financial Group. No adviser received these fees at any time.

Q. A customer has been told they are receiving the fee minus a rebate in their letter. Can we explain?

The reason they were not refunded the entire fee amount is because they also received a partial rebate on the fee that was charged. We have refunded you what was left owing from the fee taken in error less the rebate you previously received .

Q. The customer wants to lodge a formal complaint


44


Email [email protected]

Write National Complaints Manager Level 12 33 Alfred Street Sydney NSW 2000

AMP.6000.0019.8063

We will acknowledge your complaint within five days. We'll call because we'd prefer to talk to you on the phone, but we may also email or post you a letter, to let you know we've received your complaint and how we'll work to resolve it.

For U2 and Unit Trust

The applicable categorisation of the complaint in CRM should be:

a Comms Log

Details of the complaint should be included as per normal process.

For North Products

Complaints to be raised in Bluedoor system as per normal process as Complaints: Fees and Charges\Plan conditions

What if the customer is not satisfied with the review or resolution attempt?

If a customer is not satisfied with the review or complaints process, they may contact the Financial Ombudsman Service. They can be contacted at:

Financial Ombudsman Service Limited GPO Box 3 MELBOURNE VIC 3001 Calling from Australia : 1300 78 08 08 Calling from overseas: 61 396137366 Or [email protected]


45

AMP.6000.0019.8064


This outbound call script is for contact centres to use when calling customers affected by the fee remediation.

Section 1: Call script

Welcome message and intro

Operator: Hi, may I please speak with <customer name>? This is <name> calling on behalf of AMP Horizons Financial Group. We have a refund of fees for you, have you got a minute for me to explain?

Customer response YES

Operator: We want to let you know about a refund you are receiving from us. Some service fees were charged to your <account type> and because of a breakdown in our processes, it could be possible that you did not receive some or all of the agreed services.

AMP has decided to provide you with a refund for all the service fees charged to you by AMP Horizons Financial Group to make sure you are in no way disadvantaged. These fees have now also been turned off.

We've sent you a letter, which you should receive shortly. The letter will confirm the fees charged in error, and the repayment amount including missed earnings.

Customer response NO

Operator: Ok, I am ringing to talk about a refund you are receiving from us. It is important but not urgent that we speak so if it's ok with you I'll call you back. When would be a good time for me to call? And what number would be best?

(take details and arrange call back)

Thanks for your time, I'll call you back.


Offer for investment update

Operator: Whilst I have you, I'd like to spend a brief moment of your time providing you with an update on your investments and answer any questions you may have.

Yes - ok, I'll get one of our specialists to call you. What's the best contact number for us to call you on?

Horizons Fee remed iation - outbound call scri pt - February 2017 Page 11 of 4

46


No - that's ok, if you change your mind at any time, please feel free to call us on 1300 069 770 and we'll be able to help you then.

AMP.6000.0019.8065

Thanks for your time. Remember, you can call us anytime on 1300069770 or visit our website amp.com.au if we can assist you further.


Section 2: Possible customer questions I responses

When did you refund the money?

The money was recently refunded back in to your account. And on 13 February, 2017 we will send/sent a letter explaining the error and confirming the refund . You should get this letter soon .

I don't remember ever agreeing to pay an advice fee in the beginning?

On <insert date> you entered into an ongoing service agreement with <insert adviser name>, and you began to pay an ongoing service fee of <insert $amount>.

Due to an administrative breakdown it could be possible that you did not receive some or all of the agreed services which was an error on our behalf. We're now repaying you this amount plus any missed earnings. We have also turned these fees off, however if you'd still like to work with a Financial Adviser, we 're happy to arrange an obligation-free, complimentary meeting to review of your circumstances with one of our financial advisers. We offer this to ensure the advice provided to you is still appropriate to your current situation. Would you be interested?

If customer is interested please direct lead to: [email protected] and include details below:

• Client Name: --------------------

• Policy number:-----------------• 008: ________ _

• Phone number: ------------------

• Call back time: time member prefers for call back

• Seeking advice on:- what kind of advice required

Between what dates were the fees deducted? The fees were deducted between <insert first date fee> and <insert last date fee>. During this time is when the administrative breakdown occurred

(Please refer to the customer call spreadsheet where there are 2 columns referring to the date of the, first fee. and the date of the last fee):

Why did this happen to me?

Due to a breakdown in our processes we aren't able to confirm whether you received your agreed services. We want to refund you all the service fees you were charged to make sure that you are in no way disadvantaged. We have also turned these fees off, however if you'd still like to work with a Financial Adviser, we're happy to arrange an obligation-free, complimentary meeting to review of your circumstances with one of our financial advisers. We offer this to ensure the advice provided to you is still appropriate to your current situation. Would you be interested?

As mentioned above -direct lead to [email protected]

How long have you been charging me this fee for?

In your case we have found the service fee charged to your account in error occurred between <insert date> and <insert date>. However, we want to let you know, so that you are not financially disadvantaged in any way

Horizons Fee remediation - outbound call script - February 2017 Page 12 of 4

47

AMP.6000.0019.8066


we will be repaying you any fees charged in error plus missed earnings on that amount. We have also turned these fees off, however if you'd still like to work with a Financial Adviser, we're happy to arrange an obligationfree, complimentary meeting to review of your circumstances with one of our financial advisers. We offer this to ensure the advice provided to you is still appropriate to your current situation. Would you be interested?

As mentioned above -direct lead to [email protected]

How did you calculate the refund amount?

Service fees charged to your account in error amounted to <insert dollar amount>. The total amount we're crediting your account is <insert dollar amount> . This has been calculated by adding the service fees charged in error and any missed earnings that may have accrued over this time.

What if I am not satisfied with the review? If you still have concerns once you receive the review from AMP you may contact the Financial Ombudsman Service who helps financial service industry providers and their customers to resolve any concerns. They can be contacted at:

Financial Ombudsman Service Limited GPO Box 3 MELBOURNE VIC 3001

Calling from Australia: 1300 78 08 08 Calling from overseas: 61 3 9613 7366


Will this impact my Centrelink payments and are there any tax implications for me?

We're unable to provide advice on tax or Centrelink payments. So we always recommend our customers seek independent advice.

Will you pay for me to see my tax professional/accountant about this matter?

Please send a written request together with proof of the cost incurred (by way of an invoice from your accountant/tax specialist) .

Please send your request and proof to:


Or email : [email protected]

Closed accounts: my account was closed years ago, why are you contacting me now?

Even though your account is closed we still want to ensure that you're fully aware of the service fees that were incorrectly charged to you, as well as the repayment we will make to you. We will not make any changes to the closure of your account. You will shortly receive a letter that clearly explains the repayment being made to you. For investment accounts, you will receive a cheque and for superannuation accounts we will provide a form for you to nominate your preferred payment method.

I'd like to update my details/change my investment details etc.

That's easy. I can do that for you right now.

Can I get the repayment in cash?

No, we aren't able to make payments in cash.

For open superannuation accounts, we will return the money back into the account.

Horizons Fee remediation - outbound call script - February 2017

48

Page 13 of 4

AMP.6000.0019.8067


For closed investment accounts, you will receive the refund by cheque which you can then take to your bank and deposit into an account of your choice.

For closed superannuation accounts, we must, by law, make the payment into another super account, unless you are of preservation age, in which case you can elect to have the payment made to your bank account. Just select your preferred payment method on the form that will be enclosed with the letter and return it to us in the reply paid envelope

I never agreed to pay the fee

Our records show an advice relationship was initiated where you entered into an ongoing service arrangement, with fees associated. However, if you want us to we can investigate this for you.

Who has had the fees all this time?

The fees that you were mistakenly charged were collected and held by AMP Horizons Financial Group. Your adviser did not have access to these fees at any time.

Horizons Fee remediation - outbound call script - February 2017 Page 14 of 4

49

Attachment C

Ongoing service fee arrangements upon transfer of customer register back to Advice Licensee

Inadequate processes Horizons to ensure delivery of December ongoing services where 2016 acquiring customer registers

Disposing Adviser Additional 3 May sales ID for customers BOLR 2017 subject to BOLRIBB/BOO

Disposing Adviser Terminated 3 May Sales ID for Offboarded Advisers 2017 Advisers terminated for cause

Ongoing Service Fees Ipac 8 June 2017


Ongoing Service ASIC Breach Notifications

Charter, remediated between Advice Licensees, Product Issuers and Product Hillross, ASL, Administrators. NM Super, Deloitte engaged to provide

NMMT, NMLA, a final report by end Dec that In the course of investigating and updating ASIC in AMPL impacted customer accounts relation to this breach, the concept of "ring-fencing" was have been identified and discovered, wh ich in this context refers to ongoing appropriate ly remediated service fees being left on where the transfer or sale was to be effected within 90 days (aka 90 day exception), Monthly updates being despite this not being captured in any forma l process. provided to ASIC on ERF The 90 day exception cases were reported on to ASIC in and lost money allocations the course of provid ing BOLR breach updates. 2188 for closed accounts/lost customer accounts were impacted (2132 customers) money

Sample audit of customer files indicated it was not AMPFP Fina lised - final report dated always possible to identify which of 5 service offerings 27 July 2017 customer was entitled to and whether services were provided. Licensee controls inadequate. Subject too final

reporting to ASIC on externals

Charging of ongoing service fees after advisers AMPFP, Investigation stage to identify exercised BOLR/BB/BOO and customers never Charter, Hillross sales ID, products and transferred to the BOLRIBOO/BB pool and/or new customers impacted; Last adviser. update to ASIC 22

September 2017 This breach was reported as an extension of the initia l BOLR breach dated 27 May 2015, noting that the initial BOLR breach relates to the period after the customer has been transferred to the BOLR (or equivalent) pool whereas the Additional BOLR breach re lates to the earlier period prior to transfer of customers to the BOLR pool.

(Sometimes referred to as Category 1 Customers)

Charging of ongoing service fees after adviser's AMPFP, Investigation stage to identify authorisation has been terminated by Licensee due to Charter, Hillross sales ID, products and inadequate policies and processes around compliance customers impacted; last off-boarding update to ASIC 22

September 2017

Acquisition of register rights by ipac advisers and Ipac Reviewing customers customers placed into holding account and ongoing transferred into holding service fees not switched off. Twenty-five customers accounts and ongoing fees were identified and remediated as part of BOLR breach being charged. Last update but subsequently reported as a separate breach. to ASIC 18 September 2017

(12,647 customer accounts internal & external product providers)

2,132 customers

(2,188 AMP customer accounts)

1,617 customers (internal &

external product accounts)

PWC reviewed

10,685 customers some of whom will have been remediated under the BOLR breach but will also require remediation for this breach

(internal & external product accounts, however external number yet to be verified likely to be revised downwards)

Potential Compensation

$2 .84M (actual)

$O.85M (actual)

$1 .022M (actual)

$1 .08M (th is figure is fee only ie excludes missed earnings and is subject to verifying externals)

1,660 customers - some of whom will have already been remediated under the 90 day BOLR exception but wi ll also need to be remediated for th is breach.

3,108 (source CERT - yet to verify $1.2M (source CERT -

whether service was provided) yet to verify whether service was provided and refunds also subject to missed earnings)

200 (estimate from ipac breach Estimate not yet working group) available as

investigations not far enough progressed.

AMP.6000.0019.8068

As at 15 November 2017

Payments Operational error1

completed (Product providers following up on closed accounts)

Payments Delegation2

completed

(Product providers following up on closed accounts)

Payments Operational error3

completed

Remediation not Operational error4

commenced. Anticipate payments to

customers Q1

Investigations DelegationS Complete

Remediation not commenced

Investigations Operational error6

ongoing

Unknown7

Investigations Investigations ongoing ongoing to

determine root cause - operational or delegation8

1 The original breach proposed four hypothesis for ongoing service fees remaining on. At the time of reporting the breach only administrative errors had been evidenced (e.g. product provider did not follow notification; and no monitoring by Licensee), Including the process for terminating external fee arrangements. 2 Attributable to the business practice for fees to remain on for up to 90 days to facilitate a register transaction 3 Attributable to the business model having no process to manage or monitor its service obligations on registers assigned to Horizons 4 Attributed to administrative errors in not transferring customer accounts to Licensee buy-back IDs and fees remaining on. S Attributable to the business practice of fees remaining on for up to 90 days to facilitate a register transaction. 6 Attributable to an operational error where customer accounts of terminated advisers were not reallocated to appropriate IDs. 7 Further investigation is needed to determine whether any customer accounts are impacted by 90 days business practice. 8 Attributable to customer accounts with service fee arrangements being allocated to a generic sales 10 - business did not recognise presence of service fees. 15112017 Page 1 of 1

50


AMP~

MEMORANDUM FOR:

FROM:

SUBJECT:

DATE:

Recommendation

CONFIDENTIAL

AMP Limited Advice Culture and Compliance Committee (Committee)

Melanie Howard-McDonald, AMP Customer Advocate

CUSTOMER REMEDIATION - ROLE OF AMP CUSTOMER ADVOCATE

11 December 2017

That the Committee notes this paper.

Purpose

AMP.6000.0019.8069

The purpose of this paper is to provide the Committee with an overview of the role of the newly appointed AMP Customer Advocate with a specific focus on its role in relation to customer remediation activity.

People consulted in preparing the paper Paul Sainsbury, Group Executive Wealth Solutions & Chief Customer Officer GL T sub committee relating to the introduction of a Customer Advocate function within AMP Pally Bargri, Chief Risk Officer - Advice Enterprise Risk Management

Key business and governance considerations

Addressed in paper Ii]

Not relevant to paper Implications for customers Implications for capital Risks arising and their mitigants Conflicts of interest or duty arising

Discussion topics and questions • Matters which the Committee believes should be considered in relation to customer

remediation as the AMP Customer Advocate Terms of Reference are finalized for consultation and approval by the CEO.

• Matters which the Committee believes should be considered by the AMP Customer Advocate when assessing the design and suitability of customer remediation activity to deliver fair and reasonable outcomes.

• Matters which the Committee believe should be considered as the AMP Customer Advocate beQins to operationalise its role in relation to customer remediation activity.

Page 1

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AMP~ CONFIDENTIAL

Background

On 31 October 2017, AMP announced the establishment of a Customer Advocate function to help and support retail and small business customers of the AMP Group who believe their complaints have not been appropriately resolved through AMP's usual complaint resolution processes.

AMP.6000.0019.8070

The AMP Customer Advocate will ensure customers receive fair and reasonable outcomes and that AMP's customer complaint processes are accessible , robust and transparent. The AMP Customer Advocate will also work closely with senior leaders and teams across the business to learn from these experiences and drive better overall customer experiences and outcomes.

The responsibilities of AMP's Customer Advice Review Panel which previously assisted customers in relation to financial advice complaints have been transitioned to the AMP Customer Advocate, as have those of the AMP Bank Advocate. There were no other changes to accountabilities and responsibilities in relation to customer outcomes across AMP as a result of the establishment of the AMP Customer Advocate function .

The AMP Customer Advocate will work alongside and complement the work of AMP's internal complaints resolution and customer service teams and the work of those teams responsible for our end-to-end relationship with customers including AMP's product management teams and strategic marketing and customer experience team.

AMP Customer Advocate Responsibilities

The AMP Customer Advocate has three core areas of responsibility:

• Advocate Complaint Reviews

• Governance and oversight of AMP's customer complaints framework

• Advocating customer perspectives and fair and reasonable customer outcomes

Advocate Complaint Reviews

The role of the AMP Customer Advocate will be to help customers if they are not satisfied with the way in which AMP has resolved their complaint. In these circumstances, customers can ask the AMP Customer Advocate to undertake a review to ensure that the outcome is fair and reasonable in the circumstances. The role of the AMP Customer Advocate in undertaking Advocate Complaint Reviews is to make an overall assessment from a 'whole of AMP' perspective, independent of the relevant business unit, of whether the customer has received a fair and reasonable outcome in their individual circumstances. The AMP Customer Advocate will work closely with AMP business units in undertaking these reviews.

'Fair and reasonable outcome in the circumstances' is the standard the AMP Customer Advocate will apply in relation Advocate Complaint Reviews. This will enable the AMP Customer Advocate to consider the broader context of the customer complaint, whether all elements of the customer's complaint have been addressed, the customer's experience with AMP and other relevant circumstances such as the applicable legal and regulatory framework. In particular, in addition to considering the merits of the specific outcome determined by the internal customer complaints process, this standard will enable the AMP Customer Advocate to consider the process that has been followed in relation to resolving the complaint and how AMP business units have exercised their discretion in determining the outcome.

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AMP.6000.0019.8071


AMP~ CONFIDENTIAL

However, equally, this standard will not give the AMP Customer Advocate authority to act outside the applicable legal and regulatory requirements which relate to the customer complaint and the customer's relationship with AMP. In addition, the AMP Customer Advocate will not be able to change certain defined technical decisions without the agreement of the responsible Group Executive due to the complex nature of the AMP business and the potential for broader implications. Where the AMP Customer Advocate and the GL T member cannot agree, the AMP Customer Advocate will escalate the matter directly to the CEO. This technical decision limitation is not intended to limit the AMP Customer Advocate's capacity to consider ex gratia or goodwill arrangements if they would be appropriate in the circumstances.

Generally, the AMP Customer Advocate will only undertake an Advocate Complaint Review if the internal customer complaint handling process for that complaint has been completed and the customer has not referred the matter to an external dispute resolution body or commenced legal proceedings. However, there will be some circumstances defined in the Terms of Reference where an internal customer complaints team can refer a complaint to the AMP Customer Advocate prior to resolution .

AMP's customer complaints framework

The AMP Customer Advocate will also provide assurance in relation to AMP's customer complaints framework through operationally independent oversight, governance and reporting for AMP Group Boards, the CEO and Group Executives. Customer remediation activity forms part of AMP's customer complaints framework and is discussed in more detail below. The focus of this governance and oversight will be to ensure that AMP's customer complaint processes are accessible, robust and transparent and that outcomes produced for customers are fair and reasonable. It will also identify systemic issues which may give rise to future areas of customer complaints or which may not lead to fair and reasonable outcomes for customers.

In this capacity, the AMP Customer Advocate will be responsible for the AMP Complaints and Compensation Policies and ensuring AMP meets certain commitments under the FSC Life Insurance Code of Practice and the AMP Bank's commitments under the ABA Guiding Principles for Customer Advocates.

Advocating Customer Perspectives and Fair and Reasonable Customer Outcomes

The AMP Customer Advocate will also make recommendations and work closely with teams across the business to improve customer complaints handling policies and procedures, ensure complaint outcomes for customers are fair and reasonable, identify and recommend action that should be taken to address systemic issues and past practices which may give rise to customer complaints and ensure that customer experiences, product development and distribution processes produce fair and reasonable outcomes for customers. More broadly, the AMP Customer Advocate will also work closely with senior leaders and teams across the business and contribute to strategies, activities and processes which impact customer outcomes. This will include proactively identifying issues and/or cohorts of customers who are likely to be vulnerable and/or disadvantaged. In this way the AMP Customer Advocate will work alongside and complement the work of those teams responsible for the end-to-end relationship with our customers.

To help this, the AMP Customer Advocate will regularly engage with customers and gain their perspectives. The AMP Customer Advocate will also engage with other external stakeholders to build and maintain awareness of customer perspectives, emerging trends, financial services customer issues and best practice relating to customers and bring the insights and trends from these external engagements back into the business. The AMP Customer Advocate will also contribute to AMP's reputation management and regulatory and policy responses in relation to customer issues.

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AMP.6000.0019.8072


AMP~ CONFIDENTIAL

AMP Customer Advocate function

The AMP Customer Advocate is a direct report of Paul Sainsbury, Group Executive Wealth Solutions & Chief Customer Officer. To manage any perceived or actual conflicts of interest, the AMP Customer Advocate is operationally independent of all teams with responsibility for internal customer complaints handling and servicing customers . Within Wealth Solutions & Customer, the AMP Customer Advocate is operationally separate from functions with business performance KPls and profit & loss responsibility and the AMP Customer Advocate role charter does not contain any financial metrics.

The AMP Customer Advocate's mandate and decision making delegations in relation to Advocate Complaint Reviews will be set out in detail in Terms of Reference approved by the CEO. These delegations will be independent of the Group Executive, Wealth Solutions & Chief Customer Officer with direct escalation pathways to the CEO. Included in these Terms of Reference will be protocols for circumstances where the Group Executive, Wealth Solutions & Chief Customer Officer was involved in decision making in relation to an Advocate Complaint review.

The AMP Customer Advocate function will be a small function of 4 specialist resources initially (including the AMP Customer Advocate). While this team will be sufficient to undertake the activities set out in the Terms of Reference, it is not intended that the function will replicate existing capabilities and expertise which already exists within AMP. Instead the AMP Customer Advocate will work with business units and leverage their resources and expertise to undertake their activities.

Customer Remediation - Role of AMP Customer Advocate

Where a systemic issue has been identified and customer remediation, or a change to customer remediation activities, is required, the AMP Customer Advocate will review the proposed customer remediation activity and assess its design and suitability to deliver fair and reasonable customer outcomes before it is implemented. The AMP Customer Advocate will also consider whether the proposed process is accessible, robust and transparent. Customers who are not satisfied with the outcome provided to them as a result of customer remediation activities will also be able to request an Advocate Complaint Review of their individual outcome and circumstances. The AMP Customer Advocate will apply the same standard of 'fair and reasonable in the circumstances' to an Advocate Complaint Review in these circumstances.

Business units are responsible for the design, implementation and delivery of customer remediation programs. While customer remediation activities will not be implemented or changed until the AMP Customer Advocate has undertaken their review and is satisfied that it will deliver fair and reasonable customer outcomes, the AMP Customer Advocate will not play an active role in the design, implementation or delivery of customer remediation activities.

In undertaking an assessment of the design and suitability of customer remediation activity, the AMP Customer Advocate must act within its mandate set out in its Terms of Reference. The Terms of Reference will identify the threshold for when customer remediation activity must be assessed by the AMP Customer Advocate before being implemented, as not all customer remediation activity across the AMP group will require involvement by the AMP Customer Advocate. The Terms of Reference will also provide guidance on the matters that the AMP Customer Advocate will consider in undertaking the assessment including consideration of the circumstances of impacted customers, the proposed customer remediation process and customer experience, how outcomes for customers will be determined and what outcomes are expected to be produced for customers . Consideration will also be given to relevant legal and regulatory requirements and as well as regulatory guidance (where appropriate) .

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AMP~ CONFIDENTIAL

Next Steps

The AMP Customer Advocate's current focus is helping customers who contact the AMP Customer Advocate for help following the announcement of the appointment on 31 October 2017 and establishing this new function within AMP. This includes finalisation and approval of the Terms of Reference by the CEO, engaging within AMP and externally about the role of AMP Customer Advocate and beginning to build out the Office of the Customer Advocate.

Work has begun on reviewing AMP's Customer Complaints and Compensation Policies which provides the framework for all customer complaints handling within AMP, including customer remediation activities and engagement discussions have commenced with Advice and other areas of the business about what is required in order to operationalise the AMP Customer Advocate's role in assessing the design and suitability of customer remediation activity to deliver fair and reasonable customer outcomes before it is implemented.

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AMP.6000.0019.8076


Item 2.2 - Business Process Review I Regan

2.2.1 - Report on 2015 Advice Culture Review I Baker Cook

Verbal Update

58


MEMORANDUM FOR: Advice Culture and Compliance Board Committee ('Committee')


SUBJECT: Advice Licence Management


Action required by the Committee For discussion and noting

Recommendation That the Committee notes this report and endorses the recommendations.

Discussion and topic questions • Approach to Responsible Manager (RM) selection and appointment; and • Risks identified in licence management particularly around key person risks

relating to RMs for Advice Licensees and directors of Advice entities.

People consulted in preparing the paper Lionel Mateo

Background and positioning In response to the matter arising from the Committee on 3 November 2017, this paper seeks to outline potential solutions that are available to address the key person risks relating to directors and RMs for Advice Licensees.

ASIC requires holders of Australian Financial Services Licences (AFSLs) and Australian Credit Licences (ACLs) to comply with several regulatory requirements. These include requirements around organisational competence (i.e. responsible managers), risk management, compliance and monitoring, adequacy of resources, conduct and disclosures, and dispute resolution.

Currently, Advice operates 19 AFSLs and 10 ACLs 1, including licences under Equity Partner arrangements. Appendix 1 sets out current RMs and directors of each licensee and associated entities.

Advice licensee boards are currently governed through concurrent forums in which all licensee boards are represented.

Purpose The purpose of this paper is to outline the risks with respect to RM coverage and the available options to address them.

I AFSL & ACL - AMP Financial Planning (AMPFP), Charter Financial Planning Limited (Charter) , Genesys Wealth Advisers Limited (Genesys) , Hillross Financial Planning (Hillross), ipac Securities Limited (ipac), Jigsaw Support Services Limited (Jigsaw), SMSF Advice Pty Ltd (SMSF Advice) , and Quadrant Securities Pty Limited (Quadrant) and Portfolio Planning Solutions Limited (PPS) AFSL only - Tynan Mackenzie Pty Ltd (Tynan) and AMP Direct Pty Ltd (AMP Direct) , Strategic Planning Partners Pty Ltd (SPP), TFS Financial Planning Partners Pty Ltd. (TFS), King Financial Services Pty Ltd (King), Forsythes Financial Services Pty Ltd (Forsythes), Total Super Solutions Pty Ltd (TSS), Prosperitus Pty Ltd (Prosperitus), PPS Lifestyle Solutions Pty Ltd (PPS Lifestyle) , Australian Financial Risk Management Pty Ltd (AFRM) ACL only - Wealth Vision Home Loans Pty Ltd.

59

AMP.6000.0019.8077


Key issues and considerations The current licence management arrangements present the following risks in relation to licensee governance compliance (see Appendix 2 for detailed consideration) :

1. Experience and Qualifications - Not all members of the licensee management teams meet minimum experience and/or qualification requirements prescribed by ASIC. While qualifications can be obtained through the completion of relevant courses, experience requires time in a relevant role e.g. in the case of AFSLs, a minimum of 3 years in providing or supervising someone provide personal advice.

In addition, the credit licence requirements for a RM are very prescriptive i.e. minimum 2 years credit experience and a relevant qualification.

2. Day to day oversight - Under Regulatory Guide 105: Licensing organisational competence, ASIC requires nominated responsible managers to be directly responsible for significant dayto-day decisions about the ongoing provision of financial services. Ideally, all Managing Directors (MDs) and their direct reports should be appointed as RMs under the Licensee they represent. However, not all relevant staff meet the requirements prescribed by ASIC and finding suitable candidates remains challenging.

3. Number of RMs - ASIC does not prescribe an optimum number of responsible managers for a Licensee, other than the number will depend on the nature, scale and complexity of the business. Advice currently has one RM representing 7 credit licences and one RM covering 10 AFS licences. Additionally, we have two RMs covering specialist product authorisation such as MDA services and standard margin lending across multiple licences. This scenario creates a key person risk for the licensees.

4. Directorships - The majority of Advice entities have two or three Board members. However, five directors span five boards and one director spans fifteen boards. There are nine entities with only one director which places heavy reliance on the sole director and results in a key person risk to the Licensees.

Recommendations It is recommended that the Committee: 1. notes this paper, and the gaps and risks inherent in the licensees with respect to RM coverage; 2. requires management to actively work to resolve the known gaps and reduce the residual risk

exposure; and 3. seeks an update from management on the effectiveness of the implementation of actions in 6

months.

Further Consideration The Advice business currently oversees 29 licences and a further 16 entities that do not hold licences (i.e. holding companies) . Some of these licensees/entities are dormant and no longer provide any service.

It is recommended that the Advice business review these entities to determine if any licences can be cancelled and entities deregistered. This would reduce regulatory compliance burden in maintaining these entities.

60

AMP.6000.0019.8078

AMP.6000.0019.8079


Appendix 1 - RMs and directorships

Table 1: Responsible manager allocations across AMP Advice Australian Credit Licenses.

I Responsible ACL Manager

AMPFP Hillross Charter Jigsaw SMSF Genesys IPAC Quadrant Wealth PPS Advice Vision

Annual 22/12/2014 911212014 8/03/2015 8/03/2015 16/05/2015 910312015 8/03/2015 24/02/2015 Compliance Date

Key Person No No No No No No No No No No Condition Michael Guggenheimer LyndalJones

Jack Regan

Wendy Dale Louis Delfos Peter Crump

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AMP.6000.0019.8080


Table 2: Responsible manager allocations across AMP Advice AFSLs (excluding Equity Partners)

Responsible AFSL Manager

AMPFP Hillross Charter Jigsaw SMSF Genesys IPAC Quadrant Tynan AMP Advice Direct

AFSL No. 232706 232705 234665 234663 234664 232686 234656 230560 230764 366121 Adam Carlyon Chris Digby Craig Weber Leanne Milton Michael Guggenheimer Michael Paff Therese Matthews Cassandra Hinze Neil Swindells Amanda Plakalovic Jack Regan

Table 3: Responsible manager allocations for Equity Partners


SPP TFS Forsythes Prosperitus TSS King AFRM PPS LS Mezzanine PPS

AFSL No. 230887 230681 240946 236552 225492 234661 237186 247839 240991 255027 Judith Brown Bobbe Lee Duncombe Lance Swansbra Darren 0 ' Neill Julian King Craig Weber Peter Crump Michelle Loughhead

62

AMP.6000.0019.8081



SPP TFS Forsythes Prosperitus TSS King AFRM PPS LS Mezzanine PPS

Debbie Turvey Nick Hatherly Mark Hoskin Damien Jones Lou Delfos Malcolm Gee Kieran Murphy Garry Greenaway

Table 4 - Advice entities (including equity partners) directors list

Advice Entities Directors

..s::: .!!!. Q) ... ~ "0

Qj r::: Qj In Qj E r::: Q) co r::: r::: Qj

~~ ca ... ca ca "0 In >- Q) r::: ca N 0 :§ ca ~ ;; r:::

..s::: "5= r::: E

~ ·i r::: >- -..s::: ..10: ca In r::: :I: (,) In Cl ClQ)

== ~E ca 0 .- .0 ::J Q) Cl In .- ... .- .0 1il :s (,) ... Cl ::J_ (,) Qj ._ .0 In ca Q) 0 :E e> 'OJ

.- ca Q)..s::: ..s::: ._ ... .0 ca= ca Q) ca:I: .... - ::J 0 uS: ::J ... :En. 01- ZIJ) uo «« n.u ..,0::: U ca :E we> ..,:E :E ..,Ill

AMPFP

Hillross

Charter

Jigsaw

SMSF Advice

Genesys

Ipac

Quadrant

63

AMP.6000.0019.8082


Advice Entities Directors

..r::: .!!!. <II ... ~

" - r::: Qj III Qj 0 r::: <II (ij r::: r::: Qj III <II ... co ...

co r::: E " III >- <II r::: co N l: 0 :S co CIa; ~ ..r::: r::: ..r::: CI <II "fi:= ~ .~ .- ..c r::: >- -..r::: ..\I: co III r:::

(J III CI .- ..c 1il ~ 3:

.~ ~ E co 0 ... CI ::J <II ::J_ (J CI III .- Qj ._ ..c III ... co <II " 0 .- co <II..r::: ..r::: ._ ... ..c co= co <II col: .... - ::J 0 u:: ::J ... :E e> 'Qj :En. 01- Z(f) uo «« n.u ..,0:: U co :E we> ..,:E :E ..,co

AMP Direct

Tynan

SPP

TFS Financial

King Financial

Forsythes

Total Super Solutions Prosperitus

PPS Lifestyle

AFRM

WVHL

Associated Planners BMRI Financial Services Exford

Foundation Wealth2

2 Stuart Bale and Mark Hudson are also directors

6

64

Advice Entities

..r::: - r::: III <II ...

..r::: CI <II

.~ ~ E :E e> 'Qj

Hindmarsh Square3

Ipac Financial care Ipac Taxation Services4

Pajoda Investments5

Prosperitus Holdings Solar Risk Pty Ltd Synergy Capital6

TM Securities

Trenthill Financia Wealth Vision Financial Genesys Kew7

3 Natalie Isborn is also a director 4 Kerri Tanner is also a director 5 Patrick Can ion is also a director 6 Craig Dainton is also a director 7 Sarah Turkopp is the only director

Qj III co co r::: E "fi:= co 0 .- co <II..r:::

:En. 01-

AMP.6000.0019.8083


Directors

.!!!. <II ... ~

" Qj 0 r::: <II (ij r::: r::: Qj ... " III >- <II r::: co N l: 0 :S co CIa; ~ ..r::: r:::

~ .~ .- ..c r::: >- -..r::: ..\I: co III r::: (J III CI .- ..c 1il

~ 3: ... CI ::J <II ::J_ (J CI III .- Qj ._ ..c III ... co <II " 0 ..r::: ._ ... ..c co= co <II col: .... - ::J 0 u:: ::J ...

Z(f) uo «« n.u ..,0:: U co :E we> ..,:E :E ..,co

65

AMP.6000.0019.8084


Appendix 2 - Risks in the current licence management arrangement

Risk Description Licensee Approach/options - ASIC will be notified of the

cessation of Nick Brinkworth as RM at the licences annual - Appoint all MDs or their direct

1. Key person risks on credit licences compliance certification date. reports as credit RMs.

- the departure of Nick Brinkworth - Currently, Michael Guggenheimer

All credit licensees - If the MDs or direct reports do not

and Lyndal Jones are RMs for 8 -

meet the qualification in AMP resulted in a key person fo

credit licences. requirements, AMP should support all the credit licensees - If one of the RMs leave the the extension of further studies to

organisation this will result in a key help meet these requirements. person risk

- RM appointment should be considered in the future

2. Limited available resources in - A key person condition on the recruitment process for senior

Advice that meet the skills and licence is highly likely if a managers in Advice to allow for a

qualifications requirement for a replacement RM cannot be - All credit Licensees robust RM pipeline

credit licence RM . appointed within the required - Position descriptions should consider future skills and

timeframe. qualifications requirements.

- Managing directors and/or Partnership Managers should be

- Lyndal Jones (LJ) is an RM for 7 - Charter appointed as RMs for their credit licensees together with - Jigsaw respective credit licensees.

3. Dependency on one RM across 7 Michael Guggenheimer (MG) - SMSF Advice - Senior managers who meet the

credit licensees - If either MG or LJ leave the - Genesys minimum 2 years credit

organisation one of them will be a - Quadrant experience should be encouraged key person on the licence - Hillross to undertake Certificate IV or

- AMPFP Diploma level course in Finance and Mortgage Broking to make them eliQible for future nomination.

Currently licensees with general Hillross - Appoint RMs on those licensees to - -

cover general insurance 4. No coverage for product

insurance authorisation has no RM - Charter authorisation.

coverage - Jigsaw authorisation - The licensees that do not require - SMSF Advice

general insurance should apply for - Genesys a variation of the licences to

8

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AMP.6000.0019.8085


Descri tion Licensee Approac oplons remove general insurance authorisation.

- AMPFP - Leanne Milton (LM) and Therese - Hillross - Appoint RMs from the licensees

Mathews (TM) are RMs for 8 - Charter that can cover product

5. RMs have no direct oversight of AFSLs. As their roles are not - Jigsaw authorisation that LM and TM the licensees' business directly in the business they may - SMSF Advice currently cover.

not day to day oversight of the - Genesys Licensees' business. - Quadrant

- Ipac - The following Licensee product - Current RMs who do not have

authorisations have limited RM these product authorisations coverage: should be encouraged to

6. Product authorisation with limited 0 Derivatives All AFS Licensees

undertake short courses for the -relevant product authorisation. RM coverage 0 standard margin lending

0 securities - Incorporate experience in the 0 MDA services relevant product authorisation in

future recruitment. - Leanne Milton is a key person for

MDA services in respect of - Appoint RMs from the licensees Genesys Licence - Genesys that can cover standard margin

7. Key person on licences - Craig Weber is a key person for - Quadrant lending and MDA services

MDA and Standard margin lending - Tynan - Rationalise dormant licences in respect of Genesys and Quadrant licensees

- Michael Guggenheimer is a - Appoint another director to entities director of 9 entities where Michael Paff and Michael - Michael Paff is a director of 8 Guggenheimer are the only

entities - All entities in appendix 4 directors

8. Directors with more than 5 Board - Eric Gibson is a director of 11 except Tynan - Appoint another director to entities memberships entities - Equity partners

where Neil Swindells and Eric - Neil Swindells is a director of 15 Gibson are the only directors. entities - Limit an individual's appointment tc - Craig Weber is a director of 6 5 directorships.

entities

Matthew Kelly is the sole director - Strategic Planning Partners - - TFS Financial Services - Appoint one or more directors in 9. Advice entities with only 1 director for SPP and Wealth Vision Home - Wealth Vision Home Loan the relevant entities

Loan and Wealth Vision Financial - Wealth Vision Financial

9

67


Risk Description Licensee Approach/options Craig Weber is the sole director for Total Super Solutions and Prosperitus, Prosperitus Holdings and Neil Swindells is the sole director for ipac Financial care and Solar Risk Financial Judith Brown is the sole director fo TFS Financial

68

Total Super Solutions Prosperitus Prosperitus Holdings Ipac Financial Care Solar Risk Fiancial

AMP.6000.0019.8086

10


Item 2.3 - Regulatory engagement I Salter, Regan, Goedhart

2.3.2 - ASIC I Salter

Verbal update

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AMP.6000.0019.8087


Item 2.3 - Regulatory engagement I Salter, Regan, Goedhart

2.3.3 - APRA I Goedhart

Verbal update

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AMP.6000.0019.8088








Item 2.5 - Reputation and Stakeholder Management I Johnston

Verbal update

77

AMP.6000.0019.8095


Item 2.6 - Review of Control Environment I Goedhart

Verbal update

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AMP.6000.0019.8096

AMP.6000.0019.8097

Advice Culture & Compliance Board Committee - Glossary

AMP LIMITED

GLOSSARY

ACRONYM FULL EXPRESSION COMMENT

Committees AGLT AMP Capital Global Leadership The leadership team supporting the Managing Director of AMP

Team Capital.

AIC AMP Investment Committee A Group-level management committee to assist in the discharge of investment-related matters relating to AMP Life , NMLA and NMMT. Replaced the former Investment Liaison Committee (ILC).

FRCC Financial Risk and Capital An AMP Capital management committee responsible for Committee monitoring , reviewing and managing the financial risks and capital

of the AMP Capital business unit.

GALCO or Group Asset & Liabil ity A Group-level management committee which seeks to maximise Group ALCO Committee the value of shareholder capital by monitoring shareholders'

financial risks and capital financing strategy.

GLT Group Leadership Team The leadership team supporting the CEO, comprising the CEO and direct reports .

GRCC Group Risk & Compliance A Group-level management committee which oversees compliance, Committee operational and strategic risks for the Group.

IC Investment Committee AMP Capital 's peak investment committee, supported by various asset class , fund or client-based sub-investment committees.

MDC Market Disclosure Committee A Group-level management committee which oversees market disclosures for AMP Limited and recommends material market disclosures on significant matters to the Board. The Chairman is the Group General Counsel.

MISCC Managed Investments Schemes The combined compliance committee for each responsible entity Compliance Committee (registered managed investment scheme operator) within the AMP

Capital business unit.

MRC Management Remuneration A Group-level management committee with delegations from the Committee People & Remuneration Committee to oversee and approve certain

remuneration matters, principally non-equity linked remuneration schemes.

PIRC Product and Insurance Risk A management committee which oversees and monitors the Committee management of product and insurance risk exposures across

Australian Wealth Management and Australian Wealth Protection.

SMC Surplus Management Committees Committees with Board-delegated authority to implement a range of of AMP Life and NMLA investment strategies designed to provide a means of managing

shareholder surplus during periods when markets are volatile . Comprised of AMP Life/NMLA Directors and relevant senior executives.

Other AA-REIT AIMS AMP Capital Industrial A Singapore property management joint venture.

REIT

ACIT Aged Care Investment Trusts AMP Life 's holding vehicle for its interest in Opal Aged Care.

AC&L Australian Casualty and Life Life insurance company acquired by AXA APH that wrote income protection business in the 1990s.

ACL Australian Credit Licence Statutory licensing regime, supervised by ASIC, for credit providers.

ACPP Australian Core Property Portfolio A direct property portfolio in the AMP Life No 2 Statutory Fund, formerly internally known as the "P" Unit. This product was restructured in October 2014 into a managed investment scheme structure.

ACRT AMP Capital Retail Trust

ADA Accrued Default Account

ADIA Abu Dhabi Investment Authority An institutional client of AMP Capital.

ADI Approved Deposit-Taking

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AMP.6000.0019.8098



Institution ADL Agency Development Loan Loans given to AMP insurance agents from 1986 to 1991, as a

means of retaining agents during a poaching "war" with competitors.

ADPF AMP Capital Diversified Property Fund

AFSL Australian Financial Services Statutory licensing regime, supervised by ASIC, for providers of Licence financial services.

AGF AMP Capital China Growth Fund An ASX-listed managed investment scheme managed by AMP Capital which invests in Chinese listed securities. Currently in wind-up phase following a resolution of unitholders.

AGIF AMP Capital Asian Giants Infrastructure Fund

AIFRS Australian International Financial Reporting Standards

AIST Australian Institute of The Australian Institute of Superannuation Trustees (AIST) is an Superannuation Trustees independent professional body. Its members are representative,

not-for-profit superannuation funds, their trustee directors and staff. Alpha Active returns or out-performance against market returns.

AMB Asset Mix Benchmarks

AMLO Anti-Money Laundering Officer

AMLlCTF Anti-Money Laundering/Counter Terrorism Financing

AMP MPH AMP MPH Limited Formerly known as AXA Asia Pacific Holdings Limited, the ASX-listed parent entity in the AXA APH group prior to merger with AMP.

AMPCFM AMP Capital Funds Management A responsible entity (operator of registered managed investment Limited schemes) within the AMP Capital business unit.

AMPCH AMP Capital Holdings Limited The parent entity of the AMP Capital business unit, being a Key Operating Subsidiary and 15% owned by MUTB.

AMPCI AMP Capital Investors Limited The main operating entity in the AMP Capital business unit, acting as investment manager for funds and client portfolios.

AMP FLP AMP Flexible Lifetime Protection AMP risk insurance products. AMPFP AMP Financial Planning An AMP financial adviser dealer group.

AMPIS AMP Investment Services Pty Ltd AFSL holder and trustee of some wholesale property, private equity and infrastructure assets within the AMP Capital business unit.

AMPNVH AMP New Ventures Holdings A personal financial management provider. AMPNVH is the parent Limited entity of MoneyBriliiant.

APAC Australian Pacific Airports Owner of Melbourne and Launceston airports. Corporation

APAF Australian Pacific Airports Fund AMP Capital fund. API Annual Premium Income Contractual annual premium income payable on all in-force

individual and group risk policies.

APSL or APL Approved Products & Services The list of products (and services) that AMP planners are List or Approved Products List authorised to provide to customers.

A-REIT Australian Real Estate Investment Formerly known as a listed property trust. Trust

ASAL Australian Securities AMP subsidiary that provides administration services in respect of Administration Limited the FLI products.

ASCF AMP Capital Shopping Centre Fund

ASFA Association of Superannuation ASFA is a national, not-for-profit, non-party political organisation Funds of Australia that represents the interests of Australia 's superannuation funds,

their trustees and their members.

ASL AMP Superannuation Limited Trustee (RSE Licensee) in respect of AMP's retail superannuation funds.

Asset Shares Accumulation of actual past cashflows, investment earnings and some other sources of profit, net of tax, fees and shareholder profit. They are used as an important guide to setting PRE for SF1 participating policies.

2

80

AMP.6000.0019.8099



AUM Assets Under Management AUSTRAC Australian Transactions Reports Australia 's anti-money laundering and counter-terrorism financing

and Analysis Centre regulator and specialist financial intelligence unit. AV Appraisal Value An estimate of the overall economic value of the business.

Commonly determined by adding to the Embedded Value an appropriate multiple of the VNB.

AWM Australian Wealth Management

AWOF AMP Capital Wholesale Office Fund

AWP Australian Wealth Protection

AXAAPH AXA Asia Pacific Holdings limited The ASX-listed parent entity of the AXA APH group, acquired by AMP. Now renamed AMP MPH.

BAU Business as Usual

BCA Basic Capital Requirement Applied by the Life and General Insurance Capital Framework (lAGIC).

BCM Business Continuity Management

BCP Business Continuity Planning Proactive arrangements which are developed and maintained by a Business Unit in readiness for use in the event of a serious incident or disaster that affects the capacity of the Business Unit to operate normally.

BDM Business Development Manager BEA Best Estimate Assumptions Actuarial assumptions about future experience used in the

calculation of policy liabilities and embedded values. Includes assumptions about future investment income, lapses, surrenders, claims and expenses.

Beta A measure of volatility to market or index returns.

BID Best Interests Duty Statutory obligation on providers of personal financial advice to a retail customer to act in the best interests of that customer in providing advice.

BNP or BNPP BNP Paribas Custodian and fund administrator for many funds and portfolios managed by AMP Capital.

BolR Buyer of last Resort Benefits granted by AMP advice licensees (eg AMFP) that entitle advisers (usually when exiting the industry) to request the relevant licensee to buy their book of business at pre-determined multiples.

BTMU Bank of Tokyo-Mitsubishi UFJ

CAGR Compound Annual Growth Rate

CCO Chief Customer Officer

CET1 Common equity tier 1 capital

Charter or Charter Financial Planning An AMP financial adviser dealer group, formerly part of the AXA CharterFP APH business.

CIF AMP Capital Core Infrastructure Fund

CIRC China Insurance Regulatory Commission

CIV Collective Investment Vehicle

CLAMP China Life AMP Asset AMP Capital's funds management joint venture with China Life Management Company Asset Management. AMP Capital owns a 14.97% stake.

ClF Committed liquidity Facility Prudential requirement for AMP Bank.

ClPC China life Pension Company AMP life owns a 19.9% stake.

CoE Centre of Excellence (or Expertise)

Commlf Community Infrastructure Fund An AMP Capital social infrastructure fund.

Conventional Traditional older style life insurance products - a significant part of Business the Mature business in Conventional products is insurance products

that provide life cover and a regular savings plan. They share in the performance of AMP Life SF1 through annual and terminal bonus distributions. There are two types of conventional products:

81

AMP.6000.0019.8100



1. Whole of Life, which mature at age 95

2. Endowment, which mature at a nominated age.

CPP Central Policy Owners' Pool 80% of the Global Sharing Pool, used in the management of participating business. The CPP is intended to be distributed to policyholders over time.

Crediting Used to distribute profits to participating investment account Rates policyholders. Crediting rates are generally smoothed over time

and cannot be negative. They are declared quarterly in advance. Crediting rates are also declared annually in arrears to certain investment options within the Superleader product (part of Corporate Super) in a similar way to many industry funds.

CRI Customer Relationship Index A measure of how many different AMP product and services our customers hold/use.

CRM Customer Relationship Management

CRO Chief Risk Officer

CSA Control Self Assessment The key process for delivering primary assurance. This process is undertaken by Business Units in the first instance, and requires documentation of processes, risks, controls and evidence of testing.

CSR Corporate Social Responsibility

CSRC China Securities Regulatory Commission

CVP Customer Value Proposition

CWM Contemporary Wealth Management

CWP Contemporary Wealth Protection

DM Dynamic Asset Allocation

DAC Deferred Acquisition Costs

DMF AMP Capital Dynamic Markets Fund

DRMS Derivatives Risk Management Document regulating the use of derivatives by AMP Life and NMLA Statement (as required by APRA and the Life Insurance Act).

DRP Dividend Reinvestment Plan

DRS Derivative Risk Statement A statement prepared by a superannuation entity which invests in derivatives summarising the policies in place covering the use of derivatives.

EBR Equity Backing Ratio The ratio of equity investments as a percentage of total assets. The equity-backing ratio shows AMP's exposure to more volatile equity investments.

EDW Enterprise Data Warehouse EDW allows data to flow between product administration systems and other software applications. EDW is critical in providing data to customers and information to management.

EEO Energy Efficiency Opportunities

Elevate The former AXA APH risk insurance product suite.

ERF Eligible Rollover Fund

ERM Enterprise Risk Management

ESG Environment, Sustainability & Usually used in the context of discussing an entity's ESG risks Governance disclosures.

ESMT Employer Sponsored Master Trust

ETF Exchange Traded Fund Listed passive investments that track an index or an asset.

EV Embedded Value Embedded Value is a calculation of the economic value of shareholder capital in the life business and the profits expected to emerge from current policies on the books of the life business.

Experience Statutory Fund profits during the year that arise from actual Profits experience being different to the best estimate assumptions at the

start of the year.

4

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AMP.6000.0019.8101



FABS Future Advice Business Solutions FCTR Foreign Currency Translation Exchange differences arising on translation of foreign branches and

Reserve controlled entities into AUD are taken to this reserve. FCF Financial Controls Framework

FCP Finance Change Program A suite of programs and projects to improve AMP financial systems, reduce operating risk, etc.

FCR Financial Condition Report The actuarial investigation report into the financial condition of a life company as required by the Life Insurance Act. It is lodged with APRA.

FDF Future Directions Fund Multi-manager range of funds offered by AMP Capital.

FICS Financial Industry Complaints An external complaints resolution scheme approved by ASIC; Service established to deal with written complaints first by attempting to

conciliate the complaint, but, if this is unsuccessful, the consumer has the option to have the complaint determined by an independent panel or adjudicator.

FITB Future Income Tax Benefit

FLE Fees Less Expenses Reporting on the profit of investment linked business on the basis of gross fees less expenses. This was one of the key projects under the FCP and the automated report is now produced monthly.

FLI Flexible Lifetime - Investments Managed investment scheme product.

FLS Flexible Lifetime - Super Superannuation product.

FMA Financial Markets Authority New Zealand regulator.

FOFA Future of Financial Advice Legislation changes in 2013 designed to strengthen the regulatory framework for financial advice.

FOS Financial Ombudsmen Services The Financial Ombudsman Services independently and impartially resolves disputes between consumers, including some small businesses, and participating financial services providers.

FP Financial Protection

FPA Financial Planning Association The peak professional body for Australia's financial planners.

FRM Financial Risk Management

FSC Financial Services Council FSC is a national not-for-profit organisation which represents the retail and wholesale funds management, superannuation and life insurance industries.

FSG Financial Services Guide Publication for customers that describes the products and services offered by AMP, how AMP is remunerated and complaints handling procedures.

FSI Financial System Inquiry Sometimes referred to as the Murray Inquiry. Reported in December 2014.

FSRA Financial Services Reform Act A suite of amendments to the Corporations Act in 2001 to create a new regime for the regulation of financial products and services.

FTE Full-Time Equivalent (employees)

FUM Funds Under Management

GCR Guideline Crediting Rates The supportable crediting rates for each participating investment account product (within SF1) based on assumptions of future investment returns together with the impact of smoothing out past gains and losses over a 5 year period.

GDPF Global Direct Property Fund

GEFI Global Equities and Fixed Income An investment team within AMP Capital. Team

GIF AMP Capital Global Infrastructure Fund

GREIT Global Real Estate Investment Trust

GSC Group Salary Continuance

GSP Global Sharing Pool In the management of participating business, the assets in excess of the PRE pool. The GSP is to meet the working capital needs of all participating business and is not allocated to particular products.

HNW High Net Worth

5

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AMP.6000.0019.8102



HQLA High Quality Liquid Assets Relevant to AMP Bank's CLF.

Hub The Hub AMP's intranet and employee collaboration site.

iam ipac Asset Management Ltd

ICAAP Internal Capital Adequacy APRA has made a number of revisions to the capital adequacy Assessment Process framework including the requirement for an ICAAP.

IDF Infrastructure Debt Fund A series of funds operated by AMP Capital.

IDPS Investor Directed Portfolio Service

IEF AMP Capital Infrastructure Equity Fund

IFA Independent Financial Adviser

IFR Investment Fluctuation Reserve The difference between the asset shares backing the business and (Investment Account business) the total account balance at any time. Can be negative.

IFRS International Financial Reporting Standards

IMA Investment Management Agreement under which an investor (eg AMP Life) outsources the Agreement investment management of all or part of its portfolio (eg the

statutory funds) to an investment manager (eg AMPCI) . IMD Incident Management Database

Investment Participating policies in SF1 that operate with an account balance Account and crediting rates. Mostly closed to new business, but the main Business products still open are RSAIERF. Generally have capital

guarantees, but the strength of the guarantee varies by product.

IP Income Protection

ipac An AMP financial adviser dealer group, formerly part of the AXA APH group. Principally operates with employed, rather than aligned, advisers.

IRR Internal Rate of Return Money-weighted rate of return .

iSL ipac Securities Limited

KYC Know Your Customer A concept under AML requiring confirmation of the identity of those providing funds, in order to combat money laundering or counter-terrorism financing.

LAGIC Life and General Insurance APRA capital standards for life insurers and general insurers. Capital

LCR Liquidity Coverage Ratio Prudential requirement for AMP Bank.

LT Leadership Team LTI Long Term Incentive A type of employee remuneration scheme.

MAF AMP Capital Multi-Asset Fund

MAFS Multi-Asset Future State

MAG Multi-Asset Group A division within AMP Capital.

MAS Monetary Authority of Singapore MER Management Expense Ratio

MIS Management Information Systems or Managed Investment Scheme

MOHRSS China's Ministry of Human Resources and Social Security

MoneyBriliiant A personal financial management provider, owned by AMP.

MoS Margin on Services Financial reporting methodology for life insurance contracts. MPC Marginal Profit Contribution A key driver used in expense allocation methodology, to allocate

infrastructure and overhead costs to products. MRB Minimum Requisite Benefits In relation to defined benefit super plans, these are the minimum

employer funded benefits mandated under the Superannuation Guarantee (Administration) Act.

MRR Minimum Regulatory Related to prudential capital requirements. Requirement

MTV Minimum Termination Value The minimum amount that AMP is obliged to payout on voluntary termination of a policy. The minimum is determined by AMP's

6

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AMP.6000.0019.8103



policy conditions and by APRA's regulatory standards. MUAM Mitsubishi UFJ Asset

Management

MUFG Mitsubishi UFJ Trust & Banking AMP Capital has capital and business alliances with MUTB, Corporation including MUTB owning 15% of AMPCH.

MVO Minimum Viable Offer

MyLife AMP's new life insurance offer.

NAV Net Asset Value

NCF Net Cashflow

NIM Net Interest Margin

NMFM National Mutual Funds Management Limited

NMLA The National Mutual Life AXA APH's life insurance company. Association of Australasia Limited

NM Super N.M. Superannuation Proprietary Trustee (RSE Licensee) in respect of retail superannuation funds, Limited formerly operated by AXA APH.

NPS Net Promoter Score Measures the loyalty that exists between a provider and the customer.

NRA Net Revenue Amount OCR Outstanding Claims Reserve

0&1 AMP Capital Office and Industrial Business within AMP Capital managing office and industrial properties.

ORD Ordinary class of taxable income See VPST for details. Taxable income within the ORD is taxed at 30%.

PAIRS Probability and Impact Rating APRA's central risk assessment model. System

PaR Profit at Risk

Participating Policies that are entitled to participate (together with the policies / shareholder) in the profits or surplus of the business. Under the business Life Insurance Act, the policyholder share must be at least 80% of

the profits allocated to participating business. Returns to participating policyholders are made in the form of bonus rates (for conventional business) and crediting rates (for investment account business).

PAS Portfolio Administration Service

PCR Prudential Capital Requirement Under ICAAP.

PDS Product Disclosure Statement Disclosure (or offer) document outlining particular features of a financial product.

PIE Portfolio Investment Entity A tax effective investment in New Zealand.

PIR Post-Implementation Review

P&L Profit and Loss PL Policy Liabilities

PPM Private Placement Memorandum International offer document for wholesale investors.

PRE Policyholder Reasonable Life insurance concept stating that benefits paid to policyholders Expectations must be in line with their "reasonable expectations"; ie a fair level of

benefits to be paid to the policyholder compared with other policyholders and the underlying performance of investment markets.

Project Ariel The project name for the proposed transfer of the NMLA life insurance business to AMP Life (Part 9 transfer) .

Project The project name for the delivery of AMP Bank's new mortgage Phoenix processing system. PRP Policy Owner Retained Profits The component of SF1 representing profits that have been

allocated to participating policyowners, but that have not yet been distributed to those policyholders. The starting value of PRP was established in 1996, ahead of demutualisation and as required under the Life Insurance Act 1995. The Act requires a clear separation of the interests of policy owners and shareholders.

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QDII Qualified Domestic Institutional Chinese regulatory regime allowing domestic Chinese investors to Investors invest offshore.

QFII Qualified Foreign Institutional Chinese regulatory regime allowing foreign investors to invest in Investors China.

R&C Risk & Compliance

RAS Risk Appetite Statement Required by APRA.

RE Responsible Entity A public company holding an AFSL authorising it to operate a registered managed investment scheme.

Retail or Shops AMP Capital Shopping Centres Business within AMP Capital managing retail properties. orAMPCSC

Reversionary Also known as annual bonuses. One form of distribution of profits Bonuses to participating conventional (endowment and whole of life) policies.

Once declared, annual bonuses are a guaranteed addition to the sum insured. Profits are also distributed as terminal bonuses, which are not guaranteed and are more volatile.

RIL Responsible Investment Leaders Fund

RMB Renminbi Chinese currency.

RMF Risk Management Framework

RMS Risk Management Strategy Required by APRA.

RSA Retirement Savings Account

RSE Registrable Superannuation A superannuation fund regulated by APRA (eg a retail fund). Entity

RSE Licensee An entity authorised to act as trustee of an RSE (eg ASL and NM Super).

SM Strategic Asset Allocation

SC Shareholders Capital A component of the shareholder net assets in a Statutory Fund . The other components are SRPP and SRPNP.

SCM Statutory Consolidation Model The model (ie software and processes) used to prepare AMP Limited's consolidated financial statements.

SCT Superannuation Complaints The tribunal established by the Commonwealth Government to deal Tribunal with complaints about superannuation and retirement products.

SEA Segregated Exempt Asset class See VPST for details. of taxable income Taxable income within the SEA is taxed at 0%.

SF Statutory Fund

SF1 (or 2, etc) AMP Life Limited Statutory Fund No 1 (or 2, etc)

SFT Successor Fund Transfer The transfer of the benefits of members of a super fund from that fund to another on equivalent terms, pursuant to a statutory procedure.

SG Superannuation Guarantee

SGC Superannuation Guarantee Contribution

SHF Shareholders Fund

SMA Separately Managed Account

SMP Separately Managed Portfolio

SMSF Self-Managed Superannuation Fund

SOA Statement of Advice Advice document specifically tailored to a customer's personal ci rcu msta nces.

SOARS Supervisory Oversight and APRA's tool to determine supervisory strategy. Response System

SOE State Owned Enterprise

SPV Special Purpose Vehicle

SRI Social Responsible Investments

SRP Shareholder Retained Profits The total of SRP is made up of SRPP and SRPNP.

SRPP Shareholder Retained Profits That portion of SRP relating to the shareholders' share of profits

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Participating from participating business. SRPP is maintained to be 25% of PRP.

SRPNP Shareholder Retained Profits That portion of SRP relating to shareholder profits from non-Non-Participating participating business.

STI Short Term Incentive A type of employee remuneration scheme.

STP Straight Through Processing SuperlQ SMSF administrator owned by AMP. TAG The Alliances Group Division of IT@AMP that manages AMP's procurement strategy.

TCS Tata Consulting Group AMP's outsource provider in India.

TFA Tax Funding Agreement Agreement between all members of an AMP tax consolidated group under which each member undertakes to contribute to the parent entity's (eg AMP Limited) income tax liability for the consolidated AMP Group.

TIPS Targeted Incentive Plan AMP Capital remuneration arrangements for specified roles, especially sales and investment staff.

TOM Target Operating Model

Tontine effects A situation that may arise in a statutory fund where the participating business is in decline (or "running-off'). A tontine is where significant PRP (Policy Owner Retained Profits) remains undistributed but with only very few remaining policyholders.

TPD Total & Permanent Disability (or Disablement)

TS Target Surplus Statutory fund capital held in excess of regulatory requirements.

TSC Temporary Salary Continuance A monthly income benefit on temporary disablement with a maximum benefit period.

TTD Total and Temporary Disablement

UAT User Acceptance Testing A stage in the testing of computer system changes. UCITS Undertaking for the Collective International collective investment vehicle.

Investment in Transferable Securities

UIH Unified Investment House

UNPRI United Nations Principles of AMP Capital is a signatory. Responsible Investments

UPR Unearned Premium Reserve

USGAAP United States Generally Accepted Accounting Principles

VBI Value of Business Inforce An intangible item which represents the value of profits expected to be derived from an in-force book from an acquisition .

VFNB Value of Future New Business Estimated by multiplying the value of one year's new business by an appropriate new business multiple taking into account factors including the risk discount rate used and the expected duration of the business.

VIF Value of Inforce The present value of future profits expected to be derived from all current inforce policies, plus the regulatory capital and franking credits expected to be released to shareholders.

VNB Value of New Business The current value of expected future profits of the business sold during the year.

VPST Virtual Pooled Superannuation This is an income tax concept with specific application to Australian Trust life insurance companies.

WAPF AMP Capital Wholesale AXA APH's former wholesale property fund . Australian Property Fund

WFOE Wholly Foreign Owned Enterprise A subsidiary of a foreign corporation formed under Chinese law.

WM Wealth Management WP Wealth Protection

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Documents

AMP~ · Advice Culture & Compliance Board Committee -Agenda AMP~ AMP LIMITED ABN 49 079 354 519 AGENDA MEETING OF THE ADVICE CULTURE & COMPLIANCE BOARD COMMITTEE TO BE HELD AT 9.00