AMP chief executive Craig Meller has brought forward his resignation from the end of the year, to step down immediately in light of evidence of misconduct uncovered by the royal commission.
In a statement, AMP announced a number of measures following the revelations that it had lied to ASIC more than 20 times, among other acts of misconduct.
AMP non-executive board director Mike Wilkins has been appointed acting CEO and will chair a review of the institution’s advice business and governance issues.
Mr 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.
“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.”
Mr Wilkins, a former CEO of IAG Limited, will now chair the review 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.
AMP said that it will be making a submission to the royal commission to respond to the issues raised.
“AMP apologises unreservedly”
Group 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.
“We have been driving much-needed change and improvement in our advice business, which has undergone significant leadership and governance renewal over the past year, but we know we have much more to do.”
The Adviser’s sister title, ifa, is running a live blog for the duration of the second round of hearings for the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
[Related: Banker misconduct could lead to ‘jail time’]
Annie Kane is the editor of The Adviser magazine, Australia’s leading magazine for mortgage brokers. As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also the host of the Elite Broker podcast and regulator contributor to the Mortgage Business Uncut podcast.
Before joining The Adviser team at Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.
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