- AMP’s new CEO, Francesco De Ferrari, started today.
- His immediate priority is to create a new strategy for the financial services giant.
- He says the royal commission has provided “impetus for change”.
Francesco De Ferrari, a former Head of Credit Suisse’s Asia Pacific private banking business, today started as AMP Chief Executive Officer, with his main task to repair the reputation of the Australian financial services giant.
The scandal of knowingly charging customers for advice they didn’t get and of misleading the corporate regulator ASIC claimed the scalps of former CEO Craig Meller, Chairman Catherine Brenner and three other board members.
De Ferrari takes over from Mike Wilkins, a board director who stepped in after the former CEO resigned following revelations in the financial services royal commission.
He will join the board as an Executive Director at in January. Wilkins returns to his position as an independent Non-Executive.
“I am proud to join AMP at such an important juncture for the company,” says De Ferrari.
“AMP is an iconic organisation; it plays an important role in the financial well-being of Australians and the wider financial system.
“This year, AMP has faced into some of the most challenging days of its 169-year history. However, I strongly believe in the company’s purpose and I look forward to overcoming recent challenges and leading AMP’s return to growth.”
He says his immediate priority is to review the business model and develop a new strategy.
“The Royal Commission into the Banking and Financial Services Industry has provided an additional impetus for change in our business, and I’m determined we seize the opportunity,” he says.
“Our focus must be on doing better for our customers, shareholders and people. I’m committed to taking decisive action to continue the reset of the business; and to earn back trust in driving the recovery of AMP.”
AMP in October announced the sale of its insurance business to Resolution Life for $3.3 billion. AMP will now focus on its Australian wealth management, AMP Capital and AMP Bank.
David Murray, AMP Chairman, says De Ferrari is a proven change agent.
“His extensive experience in international wealth management and redesigning business models will be critical in creating the AMP of the future,” he says.
De Ferrari spent 17 years in executive roles at Credit Suisse in Asia and Europe.
In July, AMP launched a program to repair its reputation and “earn back trust” by compensating customers for lost earnings, strengthening risk management systems and controls, and cutting fees on its superannuation products.
AMP’s first half profit fell 74% to $115 million, driven down by provisions to compensate customers for financial advice they paid for but didn’t receive.
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