AMP corrects $1.185 billion RC remediation figure

AMP Limited has made clear it has wound back the $1.185 billion advice remediation figure mentioned during yesterday’s hearings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

In an announcement to the Australian Securities Exchange (ASX), it said the figure was now more likely to be $778 million, and that the larger estimate was based on a nine-year timeframe for remediation which had been rejected as unacceptable for customers by both AMP management and the board.

It said that a figure of $1.185 billion referenced in the Royal Commission on Tuesday was an early estimate of the total program costs which had subsequently been adjusted downwards to $778 million.

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The ASX announcement followed the appearance of its acting chief executive, Michael Wilkins before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry yesterday.

The company’s ASX announcement said that the total estimate for remediation including program running costs was $778 million.

The ASX announcement also confirmed additional fee for no service exposure, with the company investigating the provision of general advice to corporate super funds stating that the matter related “predominantly to small to medium corporate super plans established pre FOFA 1 July 2013 managed by advisers”.

“Based on current information, we believe the amount is unlikely to be material,” it said.

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