AMP shares fall further as chairman steps down in wake of scandal

Shares in Australia’s troubled AMP wealth management company slid further this morning upon news that Catherine Brenner, the firm’s chairman, has resigned following the Royal Commission’s confirmation on Friday that AMP could face criminal charges for misconduct.

The Royal Commission is leading an investigation into wrong-doing at the company. The inquiry has already revealed that AMP misled the Australian Securities and Investments Commission at least 20 times. AMP is accused of miss-selling to clients – charging for financial planning services that were never delivered.

AMP announced today that Brenner would be immediately replaced by acting chief executive Mike Wilkins, who will have the role of executive chairman as of Monday.

Brenner said: “I am deeply disappointed by the issues at hand and am particularly concerned for the impact they have had on our customers, employees, advisers and shareholders.”

“As chairman, I am accountable for governance. I have always sought to act in the best interests of the company and have been in discussions with the board about the most appropriate course of action, including my resignation. The board has now accepted my resignation as chairman as a step towards restoring the trust and confidence in AMP.”

AMP also confirmed the departure of its chief general counsel and company secretary, Brian Salter. The company’s shares are currently trading at $3.99, their lowest value since 2012.

Christopher Copper-Ind
Christopher Copper-Ind is Publisher and Editor of International Investment. His previous publishing experience focused largely on the Middle East and emerging markets, and he was Editorial Director of The Business Year, based in Istanbul, for three years before moving back to London in 2017. He is the author of How to Negotiate, to be published by Macmillan in 2019.

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