The AMP Limited (ASX: AMP) share price is down 5% as the company announced an unfortunate development with APRA.
AMP is a diversified financial services company which has its primary operations in financial advice, including financial planning and wealth management. A big part of its business is licensing other planning groups to provide advice. AMP also has capabilities in investing (AMP Capital), banking and insurance.
AMP’s Negative APRA Update
The Australian Prudential Regulation Authority (APRA) has issued directions and additional licence conditions to AMP Super.
APRA said this action is a result of issues identified during APRA’s ongoing prudential supervision of AMP Super as well as matters that were brought up during the Royal Commission into financial advice.
The regulator has identified several areas for improvement including conflicts of interest management, governance and risk management practices, breach remediation processes, addressing poor risk culture and strengthening accountability mechanisms.
APRA also wants AMP Super to renew and strengthen its board. AMP Super is also required to engage an external expert to report on remediation and compliance with the new directions and conditions.
This is only the second time APRA has used its broader directions power.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.