AMP & AMPP, page-1422

@rcman

Yes that's a fair point about themerits of advertising to help re-build their brand reputation.

As I think most people in society or business give you the benefit of the doubtwhen you repent and seek to repair the damage.

From what I understand, AMP hasbeen fair in repairing, their remediation program has been the bestof the big houses caught up in the RC. Daylight second.

Once they have been genuinely apologetic and seen to be fixing the past problems,they then need to be in a position to clearly articulate their valueproposition for customers.

For example, CBA doesn't appearto suffer any longer from the stench associated with their past conduct.

I think you will see moreof the advertising forthcoming, once they have their cost base and product mixfit for market. In wealth, a lot of these changes are underway with ScottHartley leading this. Price reductions for customers, cost reductions internally.

The bank, as I mentioned, it'salready on decent footing.

The platform, they have a bit ofwork to do, but aren't too far off the pace. At least now they are clearly themost honest and transparent, as others rely on sly dealer kick-backs.

Don't worry too much about AllanGray's valuation, I think they were more saying the market ascribes zero value to the business due the potential overhang of remediation, fum losses, possible law suits etc. Wealth still makes plenty of money (esp the super businessand the platform, see KKR/CBA still make about $200m p/yr odd from ColonialFirst State which is similar). The challenge is what to do with thelicensee/dealer group part of the business. How does that fit in the industrynow? AMP would not want to carry the long-tail risk of planners stuffingup and AMP having to pay for it. Planners can't be conflicted anymore, so thereis possibly an anti-vertical integration emerging bias amongst planners. Soties in to the rationale for splintering off AMP Capital Real Assets and makingthem standalone and ensuring all distribution occurs in an un-conflictedmanner.