AMP CEO Craig Meller Steps Down Over Fee Scandal

AMP Ltd. Chief Executive Officer Craig Meller stepped down, the first scalp claimed by Australia’s inquiry into misconduct in the financial industry, which this week heard the fund manager deliberately misled regulators over charging customers for services they didn’t receive. AMP apologises unreservedly for the misconduct and failures in regulatory disclosures in the advice business.

AMP said that Mike Wilkins, a Non-Executive Director on the AMP Limited Board since September 2016 and a former Chief Executive Officer of IAG Limited, has been appointed as acting Chief Executive Officer until the search for the new Chief Executive Officer is completed.

AMP Chairman 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.”

Craig Meller said, “I am honoured to have been the CEO of AMP. 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. This is not the AMP I know and these are not the actions our customers should expect from the company.”

AMP noted that an immediate, comprehensive review of AMP’s regulatory reporting and governance processes will be undertaken. This work will be overseen by a retired judge or equivalent independent expert who will be appointed imminently. A Board Committee has been established to review the issues related to the advice business raised in the Royal Commission. The Committee is chaired by Mike Wilkins and will act with the assistance of external counsel, King & Wood Mallesons.

The Group General Counsel, Brian Salter, has agreed to take leave while the review is undertaken. David Cullen, AMP General Counsel, Governance has been appointed as acting Group General Counsel.

The Board will withdraw resolution four from its Notice of Meeting to the 2018 Annual General Meeting, which relates to an equity grant for the Chief Executive Officer.

The actions announced today build upon the existing program of work, instigated in 2017. The work underway includes: Customer remediation, with the program well progressed and 15,712 customers identified and $4.7 million fees refunded to date. An external review to ensure all fee for no service business practices have ceased. This review is now complete and has confirmed that the practices ceased in November 2016.

by RTTNews Staff Writer

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