AMP has offered an unreserved apology, and announced its Chief Executive Craig Meller will step down immediately, after the revelation of misconduct and lack of disclosure in its advice business at the Banking and Financial Services Royal Commission.
Meller was due to leave his role at the end of the year (see: AMP CEO Announces Resignation) but the AMP Board announced that move would happen with immediate effect.
Former IAG Chief Executive and AMP Non-executive Director, Mike Wilkins had been appointed as acting Chief Executive Officer until a permanent replacement was found.
The Board also announced an immediate review of AMP’s regulatory reporting and governance processes to be overseen by a retired judge or equivalent independent expert, and the creation of a Board Committee to review issues related to AMP’s advice business that have been raised at the Royal Commission.
Commenting on his earlier than planned departure, Meller said “I am personally devastated by the issues which have been raised publicly this week, particularly by the impact they have had on our customers, employees, planners and shareholders.”
“I do not condone them or the misleading statements made to ASIC. However, as they occurred during my tenure as CEO, I believe that stepping down as CEO is an appropriate measure to begin the work that needs to be done to restore public and regulatory trust in AMP,” he added.
The AMP Board also stated it would withdraw a resolution from its Notice of Meeting to the 2018 Annual General Meeting which related to granting equity to Meller and announced that Group General Counsel, Brian Salter would stand aside while the review was undertaken.
AMP Board Chair, Catherine Brenner said, “AMP apologises unreservedly for the misconduct and failures in regulatory disclosures in our advice business. The Board is determined that we will meet these challenges head on, accelerating changes in both culture and performance at AMP”.
