AMP's future in Wilkins' hands

Ross Illingworth

Kingfisher Capital Partners

Melbourne, Vic

Australian Financial Review
OPINION
30 April 2018

Finally, Catherine Brenner has fallen on her sword and the AMP board has outwardly taken responsibility for their failings uncovered by the Hayne royal commission. 

Unfortunately, Brenner's resignation and a board pay cut don't go far enough. Mike Wilkins, AMP's executive chairman, would be well advised to use the AGM on May 10 to commit to decapitating the snake of poor culture at AMP.

Surely the starting point to AMP's long and winding recovery is a commitment to a staged board renewal and the appointment of an external consultant to conduct a 'fit and proper' review (APS520) of the board and senior management. 

Wilkins will have a larger audience than 750,000 shareholders 'tuned in' to his chairman's address. Apart from ASIC and APRA and their masters, the Commonwealth of Australia, there will be 3.8 million AMP customers and 24million Australians that grant the 'social' licence for AMP to operate as a bank and wealth manager.

The question on everyone's mind will be: do I trust AMP? Wilkins will have the pitch of his lifetime.