AMP confirms $200 million more in advice remediation
AMP Limited has braced the market for a profit of just $30 million, in an update released to the Australian Securities Exchange (ASX) today, including an additional $200 million in advice remediation.
It said that while the 2018 financial year results were still being finalised, AMP expected to report an underlying profit of around $680 million and a profit attributable to shareholders of approximately $30 million and attributed the result to a range of previously advised items such as the Royal Commission response, portfolio review, increased investment in risk, governance and controls and advice remediation.
It said that an additional provision for advice remediation of $200 million was no expected to be recognised at 31 December, 2018.
It said the provision contained two items that had previously been disclosed as estimated – program running costs of $186 million and customer lost earnings of $14 million.
Elsewhere in its ASX announcement the company said that earnings in its retained businesses were expected to be impacted by external market conditions, the regulatory environment, implications of the future strategy and a number or previously advised factors including the full-year impacts of the MySuper pricing changes to Australian wealth management of $35 million and unwinding the external distribution arrangements and adjustments for tax and products transferring to Resolution Life.
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