A senior executive at Australia's largest wealth manager AMP admits he feels some "discomfort" about a supposedly independent report into their unlawful activity that went through 25 draft versions.
AMP and Australia's largest bank Commonwealth Bank are facing a grilling by the financial services royal commission over the fees for no service issue, which has also involved ANZ, Westpac and National Australia Bank.
AMP's group executive for advice Jack Regan spent spent two days giving evidence in the banking royal commission's second round of public hearings.
The inquiry heard AMP deliberately and unlawfully continued charging fees to "orphan" clients for three months despite them not receiving advice services.
AMP presented an independent report to the Australian Securities and Investments Commission last year as a follow up to the activity, but only after it went through 25 draft versions and a series of changes from senior executives and the board.
"There is a level of discomfort," Mr Regan admitted.
The Commonwealth Bank is next to be grilled about its fee for no service issues involving its subsidiaries Commonwealth Financial Planning and Count Financial Planning.
Senior counsel assisting the commission Rowena Orr QC said often clients received no service or did not receive the service they were entitled to, yet ongoing fees continued to be deducted from their investments.
Commonwealth Financial Planning and another CBA subsidiary BW Financial Advice are paying $88.6 million in compensation to 31,500 customers who did not receive an annual review as part of their financial advice service package.
CBA CEO Matt Comyn apologised to customers on Friday, saying it was unacceptable.