Murray answers SOS to restore AMP trust

BELEAGUERED wealth manager AMP has appointed former Commonwealth Bank chief David Murray as its chairman as it searches for a circuit breaker to end its run of woe.

The appointment of Mr Murray came as the wealth management giant rejected suggestions it could face criminal charges for lying to the cor- porate cop over a scandal where it charged customers for services they never received.

AMP yesterday said Mr Murray, who led the Com- monwealth Bank from 1992 to 2005 and was the first Future Fund chairman, would take over at its general meeting, to be held before the end of June.

The company said Mr Murray, 69, would “lead the redevelopment of governance processes” and find a new chief executive to replace executive chairman Mike Wilkins.

Mr Murray said AMP needed to operate in a way that built community trust in the broader financial system.

“Restoring trust and confidence is not easy and does not happen overnight, but I am confident this can be achieved,” he said.

The appointment came as AMP issued its formal response to evidence aired during its appearance at the banking royal commission.

It said there was no evidence its board, including former chairwoman Catherine Brenner and chief executive Craig Meller, acted inappropriately in relation to a report on the fee-for-no-service scandal that was given to the Australian Securities and Investments Commission.

AMP’s share price has plunged 14 per cent — stripping more than $1.8 billion from its market capitalisation — while Ms Brenner, Mr Meller and chief lawyer Brian Salter have resigned.