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AMP chairman Catherine Brenner has stepped down from the board effective immediately.
Group general counsel and company secretary Brian Salter will also leave the company. His outstanding deferred remuneration will be forfeited as a result of the Board exercising its discretion.
The board received advice from Philip Crutchfield QC, Tamieka Spencer Bruce of Counsel, and Tim Bednall of King & Wood Mallesons in relation to certain issues raised in the Royal Commission concerning the preparation of the Clayton Utz report on AMP’s fee for no service issue.
It has been revealed that AMP misled the Australian Securities and Investments Committee (ASIC) by changing an independent report numerous times to suggest there were no issues with fees for no service.
The advice follows the establishment of the Board Committee chaired by Wilkins to examine the issues relating to AMP’s advice business that have been raised in the Royal Commission.
The board decided that former chairman Catherine Brenner, former chief executive officer Craig Meller and the other directors did not act inappropriately in relation to the preparation of the Clayton Utz report.
Brenner said, “I am honoured to have been Chairman of AMP. I am deeply disappointed by the issues at hand and am particularly concerned for the impact they have had on our customers, employees, advisers and shareholders.
“As Chairman, I am accountable for governance. I have always sought to act in the best interests of the company and have been in discussions with the Board about the most appropriate course of action, including my resignation. The Board has now accepted my resignation as Chairman as a step towards restoring the trust and confidence in AMP.”
Mike Wilkins has been appointed as executive chairman, effective immediately. He will lead for an interim period while the process for selecting a chairman, and appointment of an additional new non-executive director, is conducted.
Wilkins, executive chairman, AMP Limited said, “The Board acknowledges Catherine’s leadership and thanks her for her professionalism, integrity and dedication to the company over the past eight years. We will now begin a process of board renewal, including fast-tracking selection of a Chairman, and a new director. This process will help ensure stability and further strengthen governance.
“AMP respects the Royal Commission process. I can assure you that the evidence and submissions presented by Counsel Assisting are being treated extremely seriously by the Board. Appropriate steps are being taken to address the issues raised, and remediating our customers is being given utmost priority. On behalf of the Board, I reiterate our sincerest apology to our customers, and know we have significant work to do to rebuild their trust.”
