Takeover, page-143

Now that the election is over and the Liberal Government is retained, hopefully De Ferrari will spell out what he has planned for AMP's future. I think he has been waiting to see who won the election before doing so.

So far AMP have:-

- A new CEO (Former CEO of Credit Suisse, South East Asia)
- A new Chairman (Former Commonwealth Bank chief executive David Murray )
- Four new Board members
- A renewed senior leadership team

- The Royal Commission completed. AMP were reprimanded, but got through it relatively unscathed.  However they will be making many changes as a result of the RC, these will not only benefit the company, but will provide a better service to their customers, and hopefully a better return to their shareholders.

They will do this by:-

– Strengthening their internal processes and how they oversee decision making.

– Introduce a new code of conduct so all their people are clear on what’s expected of them.
– Enhancing their whistleblowing program.
– Increasing their focus on repaying customers who were let down and were charged fees without service or​

received inappropriate advice.

AMP have made mistakes, but what they are showing is that they are doing something about it. If they didn't then the company would have no future.   As a result of the turmoil the company share price has been smacked down as a result, +60% over the past year. Personally I think this was an over-reaction. To lose $9 Billion in market capital in 12 months was extreme to say the least (They lost 30% in 1 day when they announced the sale of their Life Insurance Business, once again, an over reaction).

Many share holders have lost a lot of their investment. It is time to turn this around now and recover this loss. It all depends on leadership of the company, hopefully they will not let us down.

Personally I believe that AMP will rise from the ashes. They have been around for 170 years, they have seen the good times and the bad times. Hopefully they will be around for many more years to come.

They have admitted to their mistakes and have made momentous steps in correcting them. I wouldn't be investing in this company if I didn't believe they will able to turn it around and make good for both the customers and shareholders.