Federal Court serves AMP with $14.6m fine, nib gives back to eligible members and IDP acquires Intake Education

AMP Limited (ASX: AMP) has been fined $14.6 million by the Federal Court after it was alleged the wealth giant charged more than 1,500 customers for financial advice they were unable to receive between 2015 and 2019.

It comes as a major coup for the Australian Securities and Investments Commission (ASIC), but still falls below the $17.5 million in fines targeted by the corporate regulator.

ASIC sued AMP in July 2021 over concerns that its subsidiaries deducted around $600,000 in advice fees from 1,540 customers’ superannuation accounts, all while the company knew the customer had left the fund and wasn’t able to access the advice.

The corporate regulator argued this case, stating AMP did not act “efficiently, honestly and fairly” in its actions.

The near $15 million fine handed down by Justice Mark Moshinsky represents roughly 16% of AMP’s pre-tax profit for the year to 30 June.

nib

Health fund and insurance firm nib (ASX: NHF) has announced it will give back $40 million in claims savings to around 600,000 eligible members as a result of the tough times endured during the pandemic.

The company posted lower than expected claims ever since the pandemic stopped people from accessing medical services.

An estimated 600,000 members qualify for a one-off payment of up to $71, highlighting there has been a significant decrease in hospital and healthcare treatment since COVID-19 begun.

nib managing director Mark Fitzgibbon said the opportunity to give back is a primary concern for the company.

“The give back is in recognition of members’ reduced ability to access healthcare services during the COVID-19 pandemic,” he said.

Origin Energy

Origin Energy (ASX: ORG) has divested its near 80% stake in the Beetaloo Basin, while continuing to explore other exiting options such as the company’s interests in Australia Pacific LNG, in an effort to accelerate its renewable energy efforts.

The company’s divested stake is said to be worth around $60 million.

Origin Energy chief executive officer Frank Calabria said the decision came down to prioritising a cleaner energy future.

“The decision to divest our interest in the Beetaloo and exit other upstream exploration permits over time, will enable greater flexibility to allocate capital towards our strategic priorities to grow cleaner energy and customer solutions, and deliver reliable energy through the transition,” he said.

According to Grattan Institute energy program director Tony Wood, Origin’s decision could be a sign of the declining role of gas in Australia.

Origin will lose between $70 million and $90 million as a result of the decision, but has also inked deals to buy gas and receive a royalty payment of 5.5% of revenue from gas if production goes ahead.

Climate Council energy analyst (and former Origin executive) Andrew Stock was excited by the company’s plans to divest.

“Origin’s move to walk away from the Beetaloo Basin, and its other petroleum exploration areas, shows that the company recognises the crumbling case for new gas exploration in Australia,” he said.

“More companies should follow in Origin’s footsteps and walk away from this polluting fossil fuel.”

Qantas

Australian airline provider Qantas (ASX: QAN) has posted an improvement in performance over September, which saw a decline in flight delays, cancellations and lost baggage resulting, after recent months of disruptions and mishaps.

The national carrier released a statement stating cancellations reduced to just 2% from the 4% and 7.5% seen over August and June, respectively.

On top of this, on-time performance improved to 71% from 1-14 September, which trumps 52% and 67% posted in July and August, respectively.

As for mishandled bags, they returned to “pre-COVID levels”, at six per 1,000 passengers overall and at five per 1,000 for domestic flights.

The company put its increased performance down to a number of factors, with one being an increase in staff numbers.

Around 1,500 staff joined Qantas since April, taking up openings for cabin crew, airport customer service staff, and engineers.

Despite this, the airline has warned the coming weeks will be challenging for all involved.

“Performance will be tested in coming weeks with school holidays, long weekends and football finals driving high levels of demand at peak times,” it said.

IDP Education

IDP Education (ASX: IEL) has completed the acquisition of student placement agency Intake Education in a deal worth up to $83 million.

IDP sought after the deal in a bid to aid more students access international education.

Intake was established in 1993 and has 30 offices in many locations across the globe, including Nigeria, Ghana, Kenya, Philippines, Thailand, India, Taiwan and the United Kingdom.

IDP interim chief executive officer Murray Walton said Intake’s global profile is a suitable fit for the company.

“Intake is the market leader for UK study in several countries and has the largest and most respected agency in West Africa, which will accelerate IDP’s growth ambitions in this emerging region,” he said.

Intake Education chief executive officer Pieter Funnekotter said the deal is an exciting opportunity for both parties.

“By Intake joining IDP’s team, we will help grow the international education sector and create a new standard for how we support students to achieve their global goals.”

The agreement between IDP and Intake will be finalised in November.