AMP has announced that chief executive, Craig Meller, will step down without delay, following AMP’s misconduct and failures in regulatory disclosures recently heard by the Financial Services Royal Commission taking place in Australia.
AMP Chairman, Catherine Brenner, said “AMP apologises unreservedly” and announced a string of actions the advice business will take to fast-track the changes needed within the organisation, with Meller’s resignation among them.
Meller said he is “personally devastated” by the issues that have been raised and its impact on all those connected to AMP.
“This is not the AMP I know and these are not the actions our customers should expect from the company,” said Meller.
This is not the AMP I know and these are not the actions our customers should expect from the company
“I do not condone them or the misleading statements made to ASIC,” said Meller.
“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.”
Mike Wilkins, a Non-Executive Director on the AMP Limited Board since September 2016 and a former CEO of IAG Limited, has been appointed acting Chief Executive Officer until a new CEO is found.
Holding more than 30 years’ experience in financial services in Australia and Asia in sectors such as life insurance and investment management, Wilkins has more than 20 years’ experience as CEO for ASX100 companies
An AMP New Zealand spokesperson said, “In New Zealand, we operate within a different regulatory and governance framework, with different operating and distribution models.
“We continue to maintain an open and transparent relationship with New Zealand regulators – the FMA and RBNZ.”
The AMP Limited Board also stated it will take the following actions:
- An immediate review of its regulatory reporting and governance processes
- A Board Committee has been established to review the issues related to the advice business raised in the Royal Commission.
- The Group General Counsel, Brian Salter, has agreed to take leave while the review is undertaken, with David Cullen, AMP General Counsel, Governance stepping in as acting Group General Counsel.
AMP stated it will be making a submission to the Royal Commission to respond to the issues raised.