Treasurer unsurprised after AMP boss quits

27/04/2020 Posted by admin

AMP CEO Craig Meller has resigned amid scandals uncovered at the royal commission into banking.Treasurer Scott Morrison has suggested more heads could roll at AMP or other financial institutions as the royal commission into the sector rolls on.

AMP chief executive Craig Meller fell on his sword on Friday following shocking revelations about the financial giant uncovered by the commission inquiry into misconduct in the financial services sector.

Mr Meller, who was due to retire at the end of the year, stood down on Friday with immediate effect.

“Let’s not forget, it’s not just chief executives here,” Mr Morrison said in Melbourne on Friday.

“At the end of the day, the boards of these organisations are the custodians, really, of the governance, and I am sure that that will have plenty of attention, as the commission carries on its important work.”

Mr Meller apologised “unreservedly” for the scandal surrounding AMP, adding he was “personally devastated” for its customers.

More than $1 billion has been wiped off AMP’s stock market value this week, after its executives admitted to charging clients for advice they never received and repeatedly lying to the corporate watchdog.

Finance Minister Mathias Cormann said Mr Meller’s resignation was an obvious consequence of the commission’s work.

“Some of the news that has emerged in the royal commission is very concerning indeed and this is obviously one of the consequences out of that process,” he told Sky News from Washington.

Opposition Leader Bill Shorten stopped short of predicting more executives would step down in the wake of the inquiry.

“It makes you wonder what the people accused of bad behaviour have on the other people who should have got rid of them,” he said in Hobart.

Greens leader Richard Di Natale also suspects more banking and finance executives will follow suit, but doesn’t think that will be enough to clean up the sector.

“Having a few people fall on their sword, having potentially a couple of people being prosecuted, is not going to deal with the systemic and structural problems within the banking sector,” he said in Melbourne.

Australian Associated Press

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