Superannuation Abandon AMP As Treasurer Inquires On Boards

Posted by on May 5, 2018 in Business | Comments Off on Superannuation Abandon AMP As Treasurer Inquires On Boards

Superannuation Abandon AMP As Treasurer Inquires On Boards

Treasurer Scott Morrison has called on Australia’s financial services boards to take control for the banking royal commission, as a financial adviser in Australia, advisor to one of the largest superannuation firms in the country, abandoned support for the AMP board.

AMP’s Chairman, Catherine Brenner, is now facing conflict from all sides, following the Australian Council of Superannuation Investors and the Australian Shareholders Association calling for her resignation.

The ACSI’s Chief Executive Louise Davidson says that the royal commission suggesting AMP to be hit with criminal charges for repeatedly misleading the regulator regarding charging clients that didn’t receive any sort of service, was the straw that broke the camel’s back. She says that, with the royal commission saying that AMP face criminal charges are reinforcing that that the responsibility for the events that have been brought to light recently should rest with the board.

ACSI is the financial adviser in Australia handling several of the country’s largest super funds among the country’s biggest shareholders.

The accusations levelled at Brenner also means that the ASA and the ACSI will be opposing the re-election of three current directors at the company’s general meeting, which will be held in the 10th of May 2018. Additionally, the AMP must also appoint new members to the board, untouched by the controversy, the ASA says.

Bill Watson, CEO of First Super, says that other investors should take note of what the ACSI is asking for, adding that the actions done by the AMP management as well as the failures by governance which have recently come to light will have repercussions for millions of Australian workers. Additionally, shareholder value has plummeted, with share price dropping by a whopping 20% in April.

Treasurer Morrison says that they are looking into the boards in order to hold the boards accountable to the issues of charged dead clients fees, bribery accusations and fraud. He says that this is important because the working-class Aussies rely on these boards to keep the banks focused on caring for the customers and ensuring their well-being. The actions and accusations, he says, is to ensure that this stops and that it never happens.