Shares of AMP Limited [ASX:AMP] are trading at $3.64, up 0.55% at the time of writing in today’s market.
But over the last six months AMP’s share price has been declining quite significantly. On 22 January AMP shares were trading at $5.16. That’s a decrease of 29.45%!
Are AMP shares not worth their value?
Although the share price of AMP is trading higher today, the aftermath of the royal commission might still be felt in the wealth managing company.
AMP is facing its fourth class action over reports that it charged customers for advice they never received and repeatedly misled the corporate regulator.
In June, law firm Slater and Gordon announced that it had filed proceedings against the financial giant, describing it as a case ‘likely to be one of Australia’s largest investor class actions.’
Slater and Gordon believes the failure to disclose the full extent of the fee-for-no-service affair ‘may have constituted a breach of the ASX listing rules and the Corporations Act … and caused AMP shares to trade at a price significantly greater than their true value’.
AMP acknowledged the Slater and Gordon class action and are planning to defend all proceedings from all four class actions.
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‘AMP is vigorously defending all proceedings’ the company said in a statement.
‘We are hopeful these class actions can be consolidated in the [New South Wales] supreme court in Sydney, which already has well-progressed timeline it provide the most efficient process and greater certainty for all involved’ it said.
What’s coming up for AMP
If anything the company can be described as resilient. Their results prove that.
Despite that its operating earnings dropped by $10 million, or 2.5%, from 2016 to $391 million, partially due to customers transitioning to MySuper.
Chief executive officer Craig Meller said that shareholders see the results of AMP’s investments into their financial planning advice register, as well as their equity investments into advice practices, which he claimed are on-track to deliver $25 million in 2018.
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