AMP’s Four Steps to ‘Reset’ Its Business

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AMP has announced a set of actions it aims to take to put its customers first and foremost and bolster its risk management systems.

Among the actions to reset the business, AMP confirmed it has re-prioritised the portfolio review of the manage for value businesses and remains in active discussions with a number of interested parties.

Its other announced actions include:

  • Accelerating advice remediation, to make sure impacted advice customers are appropriately compensated.
  • Delivering improved value for around 700,000 super customers via reducing fees to AMP’s flagship MySuper products in 3Q 18.
  • Investing to strengthen risk management systems and controls
AMP Acting CEO, Mike Wilkins

AMP Acting CEO, Mike Wilkins, said the outlined actions reflect the firm’s commitment to “take decisive action to reset AMP and establish a platform from which the business can recover rapidly”.

“Our remediation provision responds to industry-wide issues raised by ASIC in its reports 499 and 515 and reflects a conscious business response to increased community expectations,” he said.

“This remediation program is complex as it will address both employed and aligned advisers, and we understand it is one of the first programs to do so.”

He said AMP is working on the program with its advisers.

“Customer needs are our immediate priority, as we firmly believe this will also best serve the longterm interests of shareholders. We know it will take time to earn back trust, however today is an important milestone in that process,” Wilkins said.