AMP Limited

{{Short description|Financial services company in Australia and New Zealand}}

{{Infobox company

| name = AMP Limited

| logo = AMP logo.svg

| logo_size =

| image = Quay Quarter Tower, Governor Phillip Tower, Sydney, 2023, 03 (2).jpg

| image_size = 180

| image_caption = The AMP's headquarters at Quay Quarter Tower, Sydney

| type = Public

| industry = Financial services

| traded_as = {{ASX|AMP}}

| foundation = {{start date and age|df=y|1849|1|1}}

| founder =

| location_city = Quay Quarter Tower

| location_country = Australia

| key_people = {{ubl |Mike Hirst (Chairperson) |Alexis George (CEO) }}

| area_served = Australia and New Zealand

| products = Superannuation and investment products, financial advice, banking services and investment management

| services =

| net_income = A$265 million

| net_income_year = 2023{{cite web |url=https://corporate.amp.com.au/content/dam/corporate/shareholdercentre/files/reports/2024/AMP_2023%20Annual%20Report_FINAL.pdf |title=AMP 2023 Annual Report |date=14 February 2024|access-date=28 March 2025}}

| assets = A$33.8 billion

| assets_year = 2023

| num_employees = 2600

| num_employees_year = 2024{{Cite web|url=https://newswire.iguana2.com/af5f4d73c1a54a33/amp.asx/2A1355927/AMP_2021_Full_Year_Investor_report|title = Announcement}}

| divisions = {{ubl |AMP Financial Services |Axa Asia Pacific }}

| subsid = {{ubl ||AMP Capital |AMP Banking }}

| homepage = {{website |http://www.amp.com.au/ }}

}}

AMP Limited (formerly Australian Mutual Provident Society) is an Australian financial services company that operates in Australia and New Zealand. It offers superannuation and investment products, financial advice and banking services through AMP Banking, including home loans and savings accounts. AMP is headquartered in Sydney, Australia. The company previously operated a global investment management business through its subsidiary AMP Capital.

AMP has one of Australia's largest shareholder registers, with most shareholders living in Australia and New Zealand due to all policy holders receiving shares in the new company when the society demutualised.

On 20 April 2018, Craig Meller resigned as CEO after it was revealed in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that AMP charged clients for financial advice which was not provided, and misled the Australian Securities & Investments Commission on numerous occasions. At that time more than $1 billion in market value was stripped from AMP shares as news of the company's failings were revealed before the Royal Commission. In the wake of revelations at the banking royal commission and his resignation from AMP, Meller resigned as a financial services adviser to the Turnbull government.

History

=1848 to 1998=

{{Expand section|significant events before 2000. It's 170 years old, but nothing interesting happened until the last 20 years?|date=September 2018|small=no}}

File:Australian Mutual Provident Society headquarters.jpg, 1878.]]On 31 August 1848, a group of businessmen, including Thomas Holt Jnr, Thomas Sutcliffe Mort, and William Perry, met to form an organisation to provide life assurance to Australians, leading to the establishment of the Australian Mutual Provident Society (AMP). Life expectancy at the time was low, and risks like disease and accidents were common. As a mutual society, AMP raised no initial capital and had no shareholders, relying on its members. The Society’s goal was to provide financial security for families through life insurance and annuities. AMP's rules were registered on 28 December 1848 under the Friendly Societies' Act of New South Wales. {{cite web |title=Small Beginnings |url=https://archives.anu.edu.au/exhibitions/175-years-amp/small-beginnings |website=ANU Archives |access-date=22 October 2024}}

David Jones was a foundation director in 1848.{{Australian Dictionary of Biography|last=Walsh|first=G. P.|year=1967|id2=jones-david-2279|title= Jones, David (1793 - 1873)|access-date=27 September 2013}}

The Australian Mutual Provident Society was formed in 1849 as a non-profit, life-insurance company, and mutual society. George King was chairman for fifteen years from the 1850s.{{Australian Dictionary of Biography|first=Martha |last=Rutledge|title=King, George (1814–1894)|id2=king-george-3953|access-date=4 January 2014}} Richard Teece was general manager and actuary from 1890 and a director from 1917 to 1927.{{Australian Dictionary of Biography|first=J. M. |last=Bennett|title=Teece, Richard (1847–1928)|id2=teece-richard-8769|access-date=27 September 2013}}

AMP began operations on 1 January 1849 at 470 George Street, Sydney, in a small upstairs office. Due to uncertain business, the office was open just 1-2 hours daily. The first policy was issued on 25 February 1849 to AMP's secretary, William Perry, marking the first policy from an Australian insurance company.{{cite web |title=Early Days |url=https://archives.anu.edu.au/exhibitions/175-years-amp/early-days |website=ANU Archives |access-date=22 October 2024}}

AMP expanded by recruiting local agents across New South Wales, Queensland, and Victoria. Initially, most policies were sold to AMP's own members, with the first external policies issued in March 1849. The company faced challenges educating the public on insurance and annuities, but by April 1851, AMP reached 100 policies.{{cite web |title=Early Days |url=https://archives.anu.edu.au/exhibitions/175-years-amp/early-days |website=ANU Archives |access-date=22 October 2024}}

In the 1850s, AMP expanded with agents in Auckland and Hobart. Perry, a key figure in AMP’s early success, passed away in 1855. The company provided support to his widow and children in recognition of his contributions.{{cite web |title=Early Days |url=https://archives.anu.edu.au/exhibitions/175-years-amp/early-days |website=ANU Archives |access-date=22 October 2024}}

File:Photograph of the Australian Mutual Provident Society head office, Sydney, published in the Sydney Harbour Bridge opening programme, 19 March 1932.jpg

In 1876, the first New Zealand AMP centre was built in Wellington. In 1910, AMP became the first company to provide assurance to soldiers. In 1960, AMP opened its Auckland office.

1976 the Quay Quarter Tower in Sydney, one of the biggest skyscrapers in the city, was initially built as the AMP centre. {{Cite web | website=InfoChoice|url=https://www.infochoice.com.au/institutions/amp|title=AMP Bank | author=Harry O'Sullivan|date={{date|2024/05/02}}}}

In 1989, it acquired the London Life Association.{{cite web |website=The Wall Street Journal |title=Australia's AMP to Acquire Henderson for $626.1 Million |author=Dow Jones Newswires |date={{date|1998/02/04}} |url=https://www.wsj.com/articles/SB886502277297544000 }}

In 1998, AMP was demutualised into an Australian public company, AMP Limited, and listed on the Australian Securities Exchange and New Zealand Stock Exchange. In 1999, AMP launched AMP Banking, an online bank. In 2003, the company demerged its UK operations, creating the Henderson Group.

AMP headquarters moved to the AMP Building on Alfred Street in 2018, although the Tower is still owned by AMP Capital{{Cite web|url=https://www.amp.co.nz/nz/about/amp-history|title=AMP history | About AMP}}File:Closeup of AMP Building statue group, 114 Palmerin Street, Warwick, 2015.JPGMany of the older AMP buildings in Australia are now heritage-listed and feature the "Amicus" statue group. The central figure in the statue group is the goddess of Peace and Plenty, holding a palm branch (signifying peace) and a cornucopia (symbolising plenty). The male figure of Labour sits to her left and also holds the cornucopia, while the figures of the wife and the child sit on the goddess's right under her palm branch. Under the statue is AMP Society's Latin motto "Amicus certus in re incerta" ("A certain friend in uncertain times").{{cite news |url=http://nla.gov.au/nla.news-article15267835 |title=General Notes |newspaper=Sydney Morning Herald |location=NSW |date=22 August 1911 |access-date=2 October 2015 |page=3 |publisher=National Library of Australia}} The importance of Amicus was also demonstrated through the ultimate award bestowed upon AMP's highest achieving advisers, Amicus membership.{{Cite web |date=2024-10-16 |title=AGS Financial Group: Awards and Recognition |url=https://agsfinancialgroup.com.au/about-ags-financial-group/awards-and-recognition-for-ags/ |access-date=2024-10-16 |language=en-AU}}

=1998-2011=

In 2003, the company demerged its UK operations, creating the Henderson Group.

={{anchor|National Mutual}} AXA merger (2011)=

On 15 November 2010, AMP announced a bid to merge its business with AXA Asia Pacific Holdings. The transaction was a joint proposal with Axa under which Axa would acquire Axa Asia Pacific Holdings's Asian business' and AMP would acquire AXA's Australian and New Zealand business.

The Australasian holdings included the former National Mutual business (established in 1869) which was demutualised in 1996. AXA had gained majority ownership of National Mutual in 1999 and renamed the company as AXA Asia Pacific.[https://www.intelligentinvestor.com.au/shares/company-overview/14824 AXA Asia Pacific Holdings Limited] {{webarchive|url=https://web.archive.org/web/20150505203112/https://www.intelligentinvestor.com.au/shares/company-overview/14824 |date=5 May 2015 }}. Intelligent Investor 2011.[http://wongm.com/2011/06/the-company-formerly-known-as-national-mutual/ The company formerly known as National Mutual] {{webarchive|url=https://web.archive.org/web/20150730012126/http://wongm.com/2011/06/the-company-formerly-known-as-national-mutual |date=30 July 2015 }}. Marcus Wong. 21 June 2011.

The first day of the merged group operating together was 31 March 2011, with the companies to be gradually integrated and the AXA brand being phased out of the Australian and New Zealand market by 2013. In February 2022, AMP delisted from the NZX, consolidating its listing on the Australian Securities Exchange.[https://www.asx.com.au/asxpdf/20220204/pdf/455nf2wgwndc20.pdf AMP confirms sole listing on the ASX to commence on 7 February 2022] AMP 4 February 2022

=Royal commission (2018)=

On 20 April 2018 Craig Meller resigned as CEO after it was revealed in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that AMP charged clients for financial advice which was not provided, and misled the Australian Securities & Investments Commission on numerous occasions.{{cite news|title=AMP CEO quits after shocking revelations at the banking royal commission|url=https://www.sbs.com.au/news/amp-ceo-quits-after-shocking-revelations-at-the-banking-royal-commission|access-date=20 April 2018|work=SBS News|date=20 April 2018|url-status=live|archive-url=https://web.archive.org/web/20180420053931/https://www.sbs.com.au/news/amp-ceo-quits-after-shocking-revelations-at-the-banking-royal-commission|archive-date=20 April 2018|df=dmy-all}}{{cite news|title=AMP boss Craig Meller steps down, company apologises after scandals revealed at banking royal commission|author=Letts, Stephen|url=http://www.abc.net.au/news/2018-04-20/amp-ceo-craig-meller-steps-down-banking-royal-commission/9679138|access-date=20 April 2018|work=ABC News|location=Australia|date=20 April 2018|url-status=live|archive-url=https://web.archive.org/web/20180420115137/http://www.abc.net.au/news/2018-04-20/amp-ceo-craig-meller-steps-down-banking-royal-commission/9679138|archive-date=20 April 2018|df=dmy-all}} More than $1 billion in market value was stripped from AMP shares as news of the company's failings were revealed before the Royal Commission.{{cite news|title=AMP in drastic action, Craig Meller exits immediately, Mike Wilkins acting CEO|url=http://www.afr.com/business/banking-and-finance/financial-services/amp-in-drastic-action-craig-meller-exits-immediately-mike-wilkins-acting-ceo-20180419-h0z0gu#ixzz5DDxqDKN9|access-date=20 April 2018|work=Australian Financial Review|author=Gardner, Jessica|date=20 April 2018|url-status=live|archive-url=https://web.archive.org/web/20180420042813/http://www.afr.com/business/banking-and-finance/financial-services/amp-in-drastic-action-craig-meller-exits-immediately-mike-wilkins-acting-ceo-20180419-h0z0gu#ixzz5DDxqDKN9|archive-date=20 April 2018|df=dmy-all}} In the wake of revelations at the banking royal commission and his resignation from AMP, Meller resigned as a financial services adviser to the Turnbull government.{{Cite web|url=https://www.smh.com.au/politics/federal/ex-amp-ceo-craig-meller-resigns-as-a-turnbull-government-adviser-20180430-p4zcf6.html|title=Ex-AMP CEO Craig Meller resigns as a Turnbull government adviser|last=Bagshaw|first=Eryk|date=2018-04-30|website=The Sydney Morning Herald|language=en|access-date=2018-05-02|url-status=live|archive-url=https://web.archive.org/web/20180501102249/https://www.smh.com.au/politics/federal/ex-amp-ceo-craig-meller-resigns-as-a-turnbull-government-adviser-20180430-p4zcf6.html|archive-date=1 May 2018|df=dmy-all}}

On 30 April 2018, Catherine Brenner resigned as chairperson with Mike Wilkins appointed acting CEO and chairperson.[https://corporate.amp.com.au/newsroom/2018/april/amp-chairman-catherine-brenner-steps-down-from-the-board Catherine Brenner steps down from the board] {{webarchive|url=https://web.archive.org/web/20180430045922/https://corporate.amp.com.au/newsroom/2018/april/amp-chairman-catherine-brenner-steps-down-from-the-board |date=30 April 2018 }} AMP Limited 30 April 2018

On 8 May 2018, directors Vanessa Wallace and Holly Kramer announced they would not be seeking re-election, in response to an imminent protest vote organised by the shareholders in the aftermath of the Banking Royal Commission. Patty Akopiantz also announced she would be resigning at the end of the year.{{Cite news|url=http://www.abc.net.au/news/2018-05-08/three-more-amp-directors-leave/9737928|title=Three more AMP directors leave in wake of bank royal commission scandal|last=Letts|first=Stephen|newspaper=ABC News|date=2018-05-08|url-status=live|archive-url=https://web.archive.org/web/20180508221048/http://www.abc.net.au/news/2018-05-08/three-more-amp-directors-leave/9737928|archive-date=8 May 2018|df=dmy-all}}

In November 2018, AMP admitted to a second overcharging scandal.{{Cite web|url=https://www.afr.com/business/banking-and-finance/financial-services/amp-admits-second-overcharging-scandal-20181127-h18fab|title=AMP admits second overcharging scandal|last=Frost|first=James|date=2018-11-29}}

In 2019, CEO Francesco De Ferrari launched a billion dollar transformation plan, aiming to recalibrate public opinion on AMP post royal commission.{{Cite web|url=https://www.abc.net.au/news/2019-08-14/amp-chief-francesco-de-ferrari-aims-turn-company-around/11412880|title=New AMP chief promises to transform the company but customers will take some convincing|last=Hobday|first=Liz|date=2019-08-14|website=ABC News|language=en-AU|access-date=2019-08-28}}

In July 2021, the Australian Securities & Investments Commission launched a case against AMP in the Federal Court, seeking pecuniary penalties and orders to publish an apology over the 'fee for no service' scandal, where the company would deduct a fee from client's accounts without performing a service. In September 2022, AMP was fined $14.6 million by the Federal Court. AMP had, as of August 2022, paid back $627 million to 331,994 customers affected by the scandal.{{Cite news |date=2022-09-20 |title=AMP fined $14.6 million over 'fee for no service' scandal |language=en-AU |work=ABC News |url=https://www.abc.net.au/news/2022-09-20/amp-banking-royal-commission-case-finalised/101458214 |access-date=2022-09-20}}{{Cite web |last=Dastoor |first=Chris |date=2022-09-20 |title=AMP fined $14.5m for corporate super advice fees |url=https://www.professionalplanner.com.au/2022/09/amp-fined-14-5-for-corporate-super-advice-fees/ |access-date=2022-09-20 |website=Professional Planner |language=en-US}}{{Cite web |last=Nichols |first=Nick |date=20 September 2022 |title=AMP hit with $14.5m fine for charging $356,000 in unlawful super fees |url=https://www.businessnewsaustralia.com/articles/amp-hit-with--14-5m-fine-for-charging--356-000-in-unlawful-super-fees.html |access-date=20 September 2022 |website=Business News Australia}}

=2018 - present =

AMP board appointed Franceso De Ferrari as Chief Executive Officer of AMP Limited on 1 December 2018.{{Cite web|url=https://www.asx.com.au/asxpdf/20180822/pdf/43xjqhqkhvh3sf.pdf|title=Media release|website=asx.com.au}}

On 25 March 2021, it was announced that De Ferrari would resign.{{Cite web|url=https://www.afr.com/rear-window/amp-ceo-francesco-de-ferrari-to-resign-today-20210325-p57e1v|title=AMP CEO Francesco De Ferrari to resign today|website=www.afr.com|date=25 March 2021}} In 2021, he was replaced by Alexis George, formerly of ANZ.{{Cite web|url=https://corporate.amp.com.au/newsroom/2021/April/Alexis_George_appointed_as_AMP_Limited_Chief_Executive_Francesco_De_Ferrari_to_retire_from_AMP|title=Alexis George appointed as AMP Limited Chief Executive, Francesco De Ferrari to retire from AMP|website=www.amp.com.au|access-date=1 October 2021}}

Operations

File:Former AMP building 86 Customhouse Quay 2021-08-21.tif]]

The company provides financial planning and advice, banking, life insurance, managed funds, superannuation, property, listed assets and infrastructure. It is Australia's largest retail and corporate superannuation provider, and is the largest life risk business in Australia. One of AMP's subsidiaries, AMP Capital, was the aligned wealth manager, with more than A$128 billionas at 31 December 2012 in assets under management, making it one of the largest asset managers in the Asia Pacific (excluding Japan) region. AMP Capital has now been stripped out of the AMP Group, along with AMP Life and sold to Dexus and Resolution Capital respectively. AMP Wealth is now the appointed investment manager within the AMP Group.

AMP has four main business areas:

Advice and banking provides financial planning and advice, superannuation services for businesses, and selected banking products. These products and services are primarily distributed through a network of self-employed financial planners. AMP has been granted a [MySuper] authority, enabling it to continue to receive default superannuation contribution from 1 January 2014.
Insurance and superannuation provides superannuation, personal risk insurance products and self-managed super fund administration, support and design. These products and services are primarily distributed through a network of self-employed financial planners
Customer solutions
AMP Capital is a global investment manager.