AMP looks to restore trust within three years
The transformation of AMP will be a three-year process as the firm seeks to regain client trust, according to chief executive Francesco de Ferrari.
Speaking at the Morningstar individual investor conference in Sydney, de Ferrari said the business was transforming into two separate divisions; one focused on the bank and wealth management and one as an asset manager.
De Ferrari, who took on the role of chief executive of AMP Ltd in December 2018, said: “We need to reposition AMP for Australian challenges and are looking to simplify the business model. It will move to bank and wealth management under one single leadership and then the international asset manager.
“It is necessary to work on this transformation of the DNA of the business and take more accountability. We want to do this quickly to get money back to clients and to restore their trust in AMP.”
AMP had also sold off its life insurance arm AMP Life for $3.3 billion which he said was a ‘not an easy decision’ for the board to make.
Asked if there was a future for wealth management in Australia, de Ferrari said: “There is a huge societal need for wealth management and getting advice right is critical where the market is tricky. This is not a simple transformation, it will take three years to reposition the business but AMP is willing to address these issues.”
Improving financial literacy, provide holistic solutions to client needs and making advice accessible to all were some of the biggest challenges he thought the Australian wealth management needed to work on.
Share price of AMP Ltd over one year to 30 September, 2019 versus the ASX 200.
AUTHOR
Laura Dew
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