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April 23, 2018

AMP CEO steps down following fee scandal

AMP CEO Craig Meller has stepped down from his role after revelation at the banking royal commission that the firm charged customers for services they did not receive and misled regulators.

The company is currently in the lookout for Meller’s replacement and has appointed Mike Wilkins as acting CEO.

Wilkins joined as a non-executive director on the AMP board in 2016 and formerly served as the CEO of IAG.

“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. 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,” Meller stated.

The company has now decided to review its regulatory reporting and governance processes, under the supervision of a retired judge or equivalent independent expert who will be appointed soon.

It has also set up a board committee to review the issues raised in the royal commission regarding its advice business. The committee will be chaired by Wilkins and will be supported by external counsel King & Wood Mallesons.

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.

Meanwhile, group general counsel Brian Salter has agreed to take leave while the review is being carried out. David Cullen, AMP general counsel of governance, will serve as acting group general counsel.

 

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