AMP boss Craig Meller resigned immediately from his position on Friday morning.
The wealth management company announced in a press release that Mr Meller, who earned $8.3 MILLION last year, agreed to step down from his role, and apologised ‘unreservedly’ for the scandals heard at the royal commission.
Mike Wilkins, a Non-Executive Director on the AMP Limited Board since September 2016, has been appointed as acting Chief Executive Officer until a new CEO is appointed.
AMP’s board announced that ‘an immediate, comprehensive review of its regulatory reporting and governance processes will be undertaken.’
‘A Board Committee has been established to review the issues related to the advice business raised in the Royal Commission,’ the bank said in the release.
AMP boss Craig Meller resigned immediately from his position on Friday morning (pictured)
A week of damaging revelations for Australia’s biggest financial players at the banking royal commission will end with Westpac and ANZ having to defend bad advice given by their planners.
After days of damning evidence about customers being charged fees for financial advice they never received, the royal commission has turned its focus to inappropriate advice.
Westpac has already admitted a senior planner gave poor advice to a couple who wanted to use their superannuation to buy a property where they could live and run a bed and breakfast business, a strategy that was never a viable option for them.
Jacqueline McDowall said she decided to tell her story to the royal commission in the hope that the same thing did not happen to anyone else.
‘I want it to get out there that when the banks, Westpac or other, train these people up to be professional advisers, that they tell the truth, that they don’t make you feel that anything’s possible and then all of a sudden they pull the rug from under your feet after they have gained all that money from you.
‘I just want people out there just to be very, very careful.’
Michael Wright, a senior executive in Westpac’s wealth management division BT Finance Group, will continue giving evidence at the inquiry on Friday about other cases of inappropriate advice.
The focus will then move to examples involving ANZ.
Australia’s largest bank, the Commonwealth Bank, and biggest wealth manager AMP had their turn in the spotlight over the fees for no service issue.
On Thursday it was revealed some advisers at CBA subsidiary Count Financial continued charging clients fees after they died, in one case for more than a decade.
Earlier this week AMP copped political heat over its admission that it lied to or misled ASIC about its business practices on the fees for no service issue.