AMP and the Royal Commission

8 May 2018

A message to our customers

Many of our customers, advisers, employees and shareholders have voiced their concerns about the issues being examined by the Royal Commission.

Many Australians are disappointed in AMP, and I understand why. We have let our customers and ourselves down.

It is important to know that some of the core issues raised in the Royal Commission were not new and had been the subject of investigations by both AMP and ASIC.

Over the past two years, we have been working hard to change processes and systems within our advice business. We have also implemented a comprehensive program to strengthen governance and controls.

I know that actions speak louder than words, and in this spirit, I want to share with you an update on how we are managing the issues:

The issue Our actions
AMP licensees charged customers fees without providing service when they were without a financial adviser. In most cases this was the result of system and process failures, but in some cases it was because of a business practice.
This was stopped in November 2016 and we have apologised and paid compensation to all affected customers.
AMP did not provide ASIC with accurate or complete information about these problems in a timely manner. This is unacceptable. We have conducted a full review and taken immediate actions to rebuild our open and transparent relationship with ASIC.
Some customers received inappropriate advice from their adviser. A process has been in place to identify and compensate all of our customers who received inappropriate advice. This process is being accelerated.
Board and executive change.

We have made a number of changes at board level. In April, CEO Craig Meller and Chairman Catherine Brenner stepped down, and I have been appointed as interim Executive Chairman. David Murray AO, a highly respected financial services leader, has been appointed as the new Chairman and will start on or before 1 July 2018. I will continue as the interim CEO while we search for a new CEO.

We are also renewing our Board of Directors. Vanessa Wallace and Holly Kramer resigned as non-executive directors in May, following feedback from our investors ahead of AMP’s AGM. Patty Akopiantz has also announced she will step down at the end of 2018. The Board is reducing fees for all AMP Limited Board Directors by 25 per cent for the remainder of the 2018 calendar year.

We recognise we have more work to do to win back your trust, and we’ll do whatever that takes. Millions of Australians are customers and shareholders and we are a major employer in Australia. You deserve us to be the very best organisation we can be.

The Board, executive team and I want to reassure customers who have concerns about their products. Our products and services are strictly regulated to protect customers’ interests. There are checks and balances at every stage. That won’t change.

We apologise unreservedly for the failings in advice and service delivery to our customers, and we’re determined to do everything we can to restore trust. The rebuilding process has begun.  

If you have further questions, you’ll find our contact details here.