Updated December 17, 2018 17:48:54

Photo: An AMP spokeswoman said the company stands by its view that the information is privileged. (ABC News)

Australia's corporate regulator has launched legal action in a bid to force troubled financial services giant AMP to hand over documents related to the company's fee-for-no-service scandal.

The regulator, the Australian Securities and Investment Commission (ASIC), is seeking records of interviews undertaken with AMP staff in relation to Clayton Utz's "independent" report into the fees-for no-service saga.

The Hayne financial services royal commission heard that AMP had been unlawfully deducting service fees from customer accounts and had misled the corporate regulator about it 20 times.

The scandal resulted in a number of senior executives, including the former chairman Catherine Brenner, leaving the company.

The calls for a full banking inquiry have been relentless for years, from a broad section of the community. So just how bad are the banks?

The documents — which could be recordings of interviews, transcripts or summations — have so far been withheld.

But ASIC wants the Federal Court to rule that the documents are not covered by legal professional privilege because they were part of the investigation into the fees-for-no-service scandal.

In October, ASIC said it issued a notice under section 33 of the Australian Securities and Investments Commission Act to Clayton Utz requiring the production of certain documents.

ASIC will argue the documents are either not covered by legal professional privilege, or were waived by AMP, because such a legal privilege does not apply if the information was part of an investigation into alleged improper or illegal behaviour.

The regulator said in a statement that it is seeking from the Federal Court "a declaration that the documents are not subject to LPP (legal professional privilege), or alternatively, that LPP has been waived by AMP".

CPA launches a conflict-free, fee-for-service financial planning arm, but it could have supported this standard universally.

An AMP spokeswoman said the company stands by its view that the information is privileged.

"AMP has been assisting ASIC with its investigation into the fees for no service matter," she said.

"Clayton Utz prepared a report in respect of an investigation of fees-for-no-services issues for the AMP board in 2017.

"AMP voluntarily shared this report with ASIC in October 2017 to assist in its investigation.

"Interviews with current and former AMP employees were conducted by Clayton Utz on a privileged and confidential basis.

"Accordingly, the file notes of the interviews are properly subject to a claim by AMP for legal professional privilege.

"AMP is considering ASIC's application, which comes before the court for initial directions in February."

The case will be heard by the Federal Court on February 8.

Topics: banking, insurance, royal-commissions, australia

First posted December 17, 2018 16:16:53