AMP boss says sorry, vows to gain trust

AMP has apologised to shareholders for its extensive misconduct revealed at the banking royal commission.

Speaking at AMP’s annual general meeting in Melbourne, interim executive chairman Mike Wilkins vowed it would win back the trust of its shareholders and the public.

“We are truly sorry,” Mr Wilkins told shareholders.

“We have let you down, we have let our customers down and we have let the wider community down.”

He said AMP did not tell the public about misconduct in its financial advice business because it have affected the regulator’s investigations.

He said he had been “repeatedly” asked why scandalous conduct, including the charging of fees for no service, was not revealed before it was exposed at the banking royal commission in April.

Mr Wilkins said disclosing any facts could have prejudiced an ASIC investigation.

He described the conduct as “a small number of individuals” not following policy and the situation being compounded by “communications that misrepresented the issue” to regulators.

“The behaviour was absolutely unacceptable,” he said, but added that the board took “decisive action” after learning about the breaches.

The embattled wealth provider is expected to record its first strike against it at the AGM following the revelations at the banking royal commission. AMP will have a strike recorded against it if more than 25 per cent of investors vote against the report.

Despite being non-binding, another strike at next year’s meeting would force a vote on whether to spill the board.

Chairman Catherine Brenner resigned last week, following chief executive Craig Meller, while two of the three directors up for re-election stepped down before a likely vote against their reinstatement led by the Australian Shareholders Association.

Patty Akopiantz will also step down from the board and serve until the end of 2018.

Andrew Harmos will seek re-election despite opposition from the Australian Shareholders’ Association.

ASA spokesman Ian Graves said it would not support Mr Harmos. Mr Harmos joined the AMP board last June but has been on the boards of subsidiaries, AMP Life and the National Mutual Life Association of Australasia since 2013.

Meanwhile, AMP says it will vigorously defend two class actions after shedding more than $2 billion in value since it started giving testimony at the royal commission.