AMP Crisis: Rebuilding Trust and Transparency

Editorial 1
Report Name: Editorial
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Word count: 750

Editorial 2
Contents
Introduction................................................................................................................................3
Editorial-1..................................................................................................................................4
Editorial-2..................................................................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

Editorial 3
Introduction
The Australian finance giant AMP is battling with a major crisis after its admission of the
deliberate misconduct of charging its customers for service which customer have never
received. The company is also under fire for misleading the regulator which may lead to legal
implications. AMP share has fallen to an all-time low wiping out nearly $3 billion of
company’s market value. Its chairwoman, Catherine Brenner, had to resign after the public
inquiry report. The government established TheRoyal Commission has brought out dramatic
disclosure serious concerns over the business model followed by AMP. The crisis has dented
the customer’s perception of the company and serious impact on shareholders, advisers, and
employees. AMP is Australia’s topmost wealth management company for retail investors.
Appropriate steps need to be taken to rebuild the image of the company and gain back the
trust of the investors (Kaye, 2018).
It is quite easy on the company’s part to issue apologies to the regulator, but the investors
have lost billions of dollars due to a steep fall in the company’s market capitalization (Yazi,
Song & Ho, 2011). To sustain the company for the longer period and to regain the faith of the
investors the business model needs to change drastically, there has to be more transparent and
trustworthy way of operating to be put in place.