AMP Share Price Continues to Fall

I wouldn’t want to be in the AMP Limited [ASX:AMP] boardroom — or what’s left of it — today.

The past three months have been gruelling for the company. After the banking royal commission revealed that AMP mishandled financial services within its wealth management business, and purposefully misled government watchdog ASIC, their stock dropped precipitously.

The company, a large provider of superannuation, investments, and advice products, has angered shareholders with its mismanagement — AMP has fallen by nearly a third since the inquiry, a valuation loss of nearly two billion dollars. Today, they continued down the drain with a 1.66% loss.

Why did this happen to AMP’s shares?

AMP is one among many in this most recent banking scandal — the big four were hit with allegations of ‘misconduct in their consumer lending businesses’ and faced significant fines.

Company reputation and consumer confidence were smashed by the ‘fee-for-no-service’ scandal…AMP’s stock tumbled and has continued down with the resulting management confusion.

Since the investigation, numerous executives have stepped down, including CEO Craig Meller and Chairperson Catherine Brenner.

Since the appointment of an acting CEO/Chairperson, it’s finally been decided that David Murray will become official chairperson, starting now. But will he be able to navigate the rough waters the previous executives left in their wake?

What’s next for AMP?

As AMP’s new management works to rebuild customer relationships, they must work alongside ongoing class actions from shareholders. There are five cases currently underway, which could result in millions more in settlement payouts and litigation fees.

Another financial headache is rising with reports that ASIC is stepping up the inquiry — more bad news that could result in further fines and stock decline.

The company must also adjust to lost status — since the scandal and resulting devaluation it has dropped from the ASX top 20.

Whether or not the company receives a public relations facelift under new management will be interesting to watch…can this disaster be turned around?


Ryan Clarkson-Ledward,
For Markets & Money

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Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:

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