AMP Limited

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AMP Limited
TypePublic
ASXAMP
IndustryFinance
Founded1 January 1849; 174 years ago (1849-01-01)
Headquarters
Key people
Debra Hazelton, (Chair)
Alexis George(CEO)
ProductsFinancial services
A$972 million (2015)[1]
Total assetsA$110.4 billion (2015)[2]
Number of employees
4,826[3]
DivisionsAMP Capital
AMP Financial Services
Axa Asia Pacific
Websiteamp.com.au

AMP is a financial services company in Australia and New Zealand providing superannuation and investment products, financial advice, and banking products (through AMP Banking) including home loans and savings accounts. Its headquarters is in Sydney, Australia.

The Australian Mutual Provident Society was formed in 1849 as a non-profit life insurance company and mutual society. In 1998, it was demutualised into an Australian public company, AMP Limited, and listed on the Australian and New Zealand stock exchanges.

AMP has one of Australia's largest shareholder registers, with most shareholders living in Australia and New Zealand. This is because when the society demutualised, all policy holders received shares in the new company.

In 2003, the company demerged its UK operations, creating the Henderson Group.

On 20 April 2018, Craig Meller resigned as CEO after it was revealed in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that AMP charged clients for financial advice which was not provided, and misled the Australian Securities & Investments Commission on numerous occasions.[4][5] More than $1 billion in market value was stripped from AMP shares as news of the company's failings were revealed before the Royal Commission.[6] In the wake of revelations at the banking royal commission and his resignation from AMP, Meller resigned as a financial services adviser to the Turnbull government.[7]

AMP board appointed Franceso De Ferrari as Chief Executive Officer of AMP Limited on 1 December 2018.[8] On 25 March 2021, it was announced that De Ferrari would resign.[9] In 2021, he was replaced by Alexis George, formerly of ANZ.[10]

Operations[edit]

The company provides financial planning and advice, banking, life insurance, managed funds, superannuation, property, listed assets and infrastructure. It is Australia's largest retail and corporate superannuation provider, and is the largest life risk business in Australia. One of AMP's subsidiaries, AMP Capital, was the aligned wealth manager, with more than A$128 billion[11] in assets under management, making it one of the largest asset managers in the Asia Pacific (excluding Japan) region. AMP Capital has now been stripped out of the AMP Group, along with AMP Life and sold to Dexus and Resolution Capital respectively. AMP Wealth is now the appointed investment manager within the AMP Group.

AMP has four main business areas:

  • Advice and banking provides financial planning and advice, superannuation services for businesses, and selected banking products. These products and services are primarily distributed through a network of self-employed financial planners. AMP has been granted a [MySuper] authority, enabling it to continue to receive default superannuation contribution from 1 January 2014.
  • Insurance and superannuation provides superannuation, personal risk insurance products and self-managed super fund administration, support and design. These products and services are primarily distributed through a network of self-employed financial planners
  • Customer solutions
  • AMP Capital is a global investment manager.

History[edit]

1848 to 1998[edit]

Australian Mutual Provident Society headquarters, Sydney, 1880
AMP Building in Warwick, Queensland, 2015
"Amicus" statue group on the AMP Building in Warwick

David Jones was a foundation director in 1848.[12]

The Australian Mutual Provident Society was formed in 1849 as a non-profit, life-insurance company, and mutual society. George King was chairman for fifteen years from the 1850s.[13] Richard Teece was general manager and actuary from 1890 and a director from 1917 to 1927.[14]

In 1876, the first New Zealand AMP centre was built in Wellington. In 1910, AMP became the first company to provide assurance to soldiers. In 1960, AMP opened its Auckland office.[15]

In 1998, AMP was demutualised into an Australian public company, AMP Limited, and listed on the Australian Securities Exchange and New Zealand Stock Exchange. In 1999, AMP launched AMP Banking, an online bank. In 2003, the company demerged its UK operations, creating the Henderson Group. [15]

Many of the older AMP buildings in Australia are now heritage-listed and feature the "Amicus" statue group. The central figure in the statue group is the goddess of Peace and Plenty, holding a palm branch (signifying peace) and a cornucopia (symbolising plenty). The male figure of Labour sits to her left and also holds the cornucopia, while the figures of the wife and the child sit on the goddess's right under her palm branch. Under the statue is AMP Society's Latin motto "Amicus certus in re incerta" ("A certain friend in uncertain times").[16]

AXA merger (2011)[edit]

On 15 November 2010, AMP announced a bid to merge its business with AXA Asia Pacific Holdings. The transaction was a joint proposal with Axa under which Axa would acquire Axa Asia Pacific Holdings's Asian business' and AMP would acquire AXA's Australian and New Zealand business.

The Australasian holdings included the former National Mutual business (established in 1869) which was demutualised in 1996. AXA had gained majority ownership of National Mutual in 1999 and renamed the company as AXA Asia Pacific.[17][18]

The first day of the merged group operating together was 31 March 2011, with the companies to be gradually integrated and the AXA brand being phased out of the Australian and New Zealand market by 2013. In February 2022, AMP delisted from the NZX, consolidating its listing on the Australian Securities Exchange.[19]

Royal commission (2018)[edit]

On 20 April 2018 Craig Meller resigned as CEO after it was revealed in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that AMP charged clients for financial advice which was not provided, and misled the Australian Securities & Investments Commission on numerous occasions.[4][5] More than $1 billion in market value was stripped from AMP shares as news of the company's failings were revealed before the Royal Commission.[6] In the wake of revelations at the banking royal commission and his resignation from AMP, Meller resigned as a financial services adviser to the Turnbull government.[7]

On 30 April 2018, Catherine Brenner resigned as chairperson with Mike Wilkins appointed acting CEO and chairperson.[20]

On 8 May 2018, directors Vanessa Wallace and Holly Kramer announced they would not be seeking re-election, in response to an imminent protest vote organised by the shareholders in the aftermath of the Banking Royal Commission. Patty Akopiantz also announced she would be resigning at the end of the year.[21]

In November 2018, AMP admitted to a second overcharging scandal.[22]

In 2019, CEO Francesco De Ferrari launched a billion dollar transformation plan, aiming to recalibrate public opinion on AMP post royal commission.[23]

In July 2021, the Australian Securities & Investments Commission launched a case against AMP in the Federal Court, seeking pecuniary penalties and orders to publish an apology over the 'fee for no service' scandal, where the company would deduct a fee from client's accounts without performing a service. In September 2022, AMP was fined $14.6 million by the Federal Court. AMP had, as of August 2022, paid back $627 million to 331,994 customers affected by the scandal.[24][25][26]

See also[edit]

References[edit]

  1. ^ "AMP news".
  2. ^ "The World's Biggest Public Companies". Forbes. Archived from the original on 23 October 2017.
  3. ^ "Announcement".
  4. ^ a b "AMP CEO quits after shocking revelations at the banking royal commission". SBS News. 20 April 2018. Archived from the original on 20 April 2018. Retrieved 20 April 2018.
  5. ^ a b Letts, Stephen (20 April 2018). "AMP boss Craig Meller steps down, company apologises after scandals revealed at banking royal commission". ABC News. Australia. Archived from the original on 20 April 2018. Retrieved 20 April 2018.
  6. ^ a b Gardner, Jessica (20 April 2018). "AMP in drastic action, Craig Meller exits immediately, Mike Wilkins acting CEO". Australian Financial Review. Archived from the original on 20 April 2018. Retrieved 20 April 2018.
  7. ^ a b Bagshaw, Eryk (30 April 2018). "Ex-AMP CEO Craig Meller resigns as a Turnbull government adviser". The Sydney Morning Herald. Archived from the original on 1 May 2018. Retrieved 2 May 2018.
  8. ^ "Media release" (PDF). asx.com.au.
  9. ^ "AMP CEO Francesco De Ferrari to resign today". www.afr.com. 25 March 2021.
  10. ^ "Alexis George appointed as AMP Limited Chief Executive, Francesco De Ferrari to retire from AMP". www.amp.com.au. Retrieved 1 October 2021.
  11. ^ as at 31 December 2012
  12. ^ Walsh, G. P. (1967). "Jones, David (1793 - 1873)". Australian Dictionary of Biography. Melbourne University Press. ISSN 1833-7538. Retrieved 27 September 2013 – via National Centre of Biography, Australian National University.
  13. ^ Rutledge, Martha. "King, George (1814–1894)". Australian Dictionary of Biography. Melbourne University Press. ISSN 1833-7538. Retrieved 4 January 2014 – via National Centre of Biography, Australian National University.
  14. ^ Bennett, J. M. "Teece, Richard (1847–1928)". Australian Dictionary of Biography. Melbourne University Press. ISSN 1833-7538. Retrieved 27 September 2013 – via National Centre of Biography, Australian National University.
  15. ^ a b "AMP history | About AMP".
  16. ^ "General Notes". Sydney Morning Herald. NSW: National Library of Australia. 22 August 1911. p. 3. Retrieved 2 October 2015.
  17. ^ AXA Asia Pacific Holdings Limited Archived 5 May 2015 at the Wayback Machine. Intelligent Investor 2011.
  18. ^ The company formerly known as National Mutual Archived 30 July 2015 at the Wayback Machine. Marcus Wong. 21 June 2011.
  19. ^ AMP confirms sole listing on the ASX to commence on 7 February 2022 AMP 4 February 2022
  20. ^ Catherine Brenner steps down from the board Archived 30 April 2018 at the Wayback Machine AMP Limited 30 April 2018
  21. ^ Letts, Stephen (8 May 2018). "Three more AMP directors leave in wake of bank royal commission scandal". ABC News. Archived from the original on 8 May 2018.
  22. ^ Frost, James (29 November 2018). "AMP admits second overcharging scandal".
  23. ^ Hobday, Liz (14 August 2019). "New AMP chief promises to transform the company but customers will take some convincing". ABC News. Retrieved 28 August 2019.
  24. ^ "AMP fined $14.6 million over 'fee for no service' scandal". ABC News. 20 September 2022. Retrieved 20 September 2022.
  25. ^ Dastoor, Chris (20 September 2022). "AMP fined $14.5m for corporate super advice fees". Professional Planner. Retrieved 20 September 2022.
  26. ^ Nichols, Nick (20 September 2022). "AMP hit with $14.5m fine for charging $356,000 in unlawful super fees". Business News Australia. Retrieved 20 September 2022.{{cite web}}: CS1 maint: url-status (link)

External links[edit]