How AMP is responding to the Royal Commission
Now that the Royal Commission into the financial services sector has delivered its final recommendations, I wanted to write to you to outline how AMP is responding to the findings.
AMP has a comprehensive plan underway to address the issues raised through the Royal Commission and to keep the company on a strong, sustainable path for its more than 3.5 million customers in Australia and New Zealand.
AMP has been supportive of the Royal Commission throughout and has embraced the opportunity for change that its findings represent.
The company has already taken significant action, including:
The appointment of Francesco De Ferrari as Chief Executive Officer in December 2018
Accelerating its Advice remediation program
A commitment to invest $100 million (pre-tax) over two years to strengthen risk management, governance and controls across the company
Appropriate consequence management including forfeiture of long and short-term incentives for a number of former executives and a reduction in Directors fees for 2018
More broadly, AMP remains committed to its purpose of helping customers manage and protect their wealth and to ensuring high quality financial advice is available and affordable for all Australians.
Financially strong and secure
Importantly, the company has the financial strength and security to achieve its goals and fulfil its commitments.
Although AMP had a challenging year in 2018, the group still posted an underlying profit of $680 million. At the end of the year it held $1.65 billion more in capital than required by the regulator.
Any change in AMP’s financial results or share price only impacts customers to the extent that a customer holds AMP shares within their portfolio (and for the great majority of customers this impact is very small).
AMP remains a market leader in superannuation and funds management, managing $258 billion on behalf of customers.
AMP’s North platform is performing strongly, growing at an annual rate of 24% over the past five years and managing $37.9 billion of customers funds.
AMP has strong protections in place for the funds entrusted to it by its customers, particularly superannuation, which is strictly regulated.
Super funds are operated by an independent board of trustees who have a legal duty to manage the money for the benefit of fund members. These funds are completely separate to shareholder funds.
Finally, I want to assure you that I’m committed to keeping you fully informed regarding your investments and any developments that impact your financial future.
If you still have questions after reading this letter, I encourage you to call us on 02 4342 1888 or firstname.lastname@example.org