Hence, the only way in which they could find out about these issues was by this information being passed from AMP Capital to AMP Life to the Group Investment Committee, and then on to them?Yes, the level of monitoring we do wouldn’t pick up something that would impact a member at such a small level. And as it turned out, how long had this issue with AMP Capital’s charging of fees been going on?Quite some time. A number of years. How at the moment, how far back is it thought to extend?I believe it’s around – about 2014. I see?But I’m remembering rather than knowing. I tender that document, Commissioner. THE COMMISSIONER: AMP Capital breach notice to ASIC, 3 August ’17, AMP.6000.0015.0710, exhibit 5.295. EXHIBIT #5.295 AMP CAPITAL BREACH NOTICE TO ASIC DATED 03/08/2017 (AMP.6000.0015.0710) MR HODGE: Commissioner, I don’t have any further questions for Ms Sansom. THE COMMISSIONER: Ms Sansom, just this last matter you’ve raised or has been raised with you, do you consider that the trustee is in a position to fulfil its obligations in light of the information that underpins that breach notice?Broadly, I believe so, but we need to keep working with the parties that we work with to strengthen controls and apply further so we continually evolve what we do and we will continue to do that from this point onwards. And how can you do that with a staff of 15?Through the outsourcing arrangements that we have in place, the outsource providers are required to act in accordance with trustee obligations. No doubt the contract provides that the outsourced the providers of outsourced – information should act properly. Is the trustee in a position where it is able to determine whether the entities to which the functions are outsourced are in truth performing those functions as agreed?To an extent, but it’s not a perfect system. To any extent, Ms Sansom, rather than to some extent, is it able to any extent to determine whether the entity to which the task is outsourced is performing its functions according to contract?Yes, I believe so.
Hence, the only way in which they could find out about these issues was by this information being passed from AMP Capital to AMP Life to the Group Investment Committee, and then on to them?Yes, the level of monitoring we do wouldn’t pick up something that would impact a member at such a small level. And as it turned out, how long had this issue with AMP Capital’s charging of fees been going on?Quite some time. A number of years. How – at the moment, how far back is it thought to extend?I believe it’s around about 2014. I see?But I’m remembering rather than knowing. I tender that document, Commissioner. THE COMMISSIONER: AMP Capital breach notice to ASIC, 3 August ’17, AMP.6000.0015.0710, exhibit 5.295. EXHIBIT #5.295 AMP CAPITAL BREACH NOTICE TO ASIC DATED 03/08/2017 (AMP.6000.0015.0710) MR HODGE: Commissioner, I don’t have any further questions for Ms Sansom. THE COMMISSIONER: Ms Sansom, just this last matter you’ve raised or has been raised with you, do you consider that the trustee is in a position to fulfil its obligations in light of the information that underpins that breach notice?Broadly, I believe so, but we need to keep working with the parties that we work with to strengthen controls and apply further so we continually evolve what we do and we will continue to do that from this point onwards. And how can you do that with a staff of 15?Through the outsourcing arrangements that we have in place, the outsource providers are required to act in accordance with trustee obligations. No doubt the contract provides that the outsourced – the providers of outsourced information should act properly. Is the trustee in a position where it is able to determine whether the entities to which the functions are outsourced are in truth performing those functions as agreed?To an extent, but it’s not a perfect system. To any extent, Ms Sansom, rather than to some extent, is it able to any extent to determine whether the entity to which the task is outsourced is performing its functions according to contract?Yes, I believe so.
transcript-16-August-2018.docx