Monday, October 22, 2018 | ePaper

AMP CEO resigns amid deepening banking scandal

  • Print
AFP,  Sydney :
The CEO of Australian finance company AMP resigned suddenly on Friday after revelations of widespread abuses by the firm, including charging thousands of customers for services never received.
At the same time, the conservative government announced tougher criminal and civil punishments for corporate wrongdoing, with jail terms of up to 10 years for executives who cheat customers or lie to regulators.
Following several days of damaging testimony by AMP executives before a Royal Commission set up in February to investigate misconduct in the banking sector, AMP announced that CEO Craig Meller was stepping down "with immediate effect".
"AMP apologises unreservedly for the misconduct and failures in regulatory disclosures in the advice business," the company's chairman, Catherine Brenner, said in a statement released early Friday.
In addition to charging clients for non-existent services, AMP admitted to the commission this week that senior executives had intervened in the drafting of a supposedly independent report drawn up for the inquiry.
It also admitted misleading the stock market watchdog Australian Securities and Investment Commission (ASIC) about the scandal, which affected some 15,700 clients between 2009 and 2016.
In its statement, AMP said a non-executive member of the firm's board, Mike Wilkins, had been appointed acting CEO and that an independent expert would head "an immediate, comprehensive review of AMP's regulatory reporting and governance processes".
AMP is just one of several major Australian financial services companies under scrutiny by the Royal Commission.
Hearings this week also revealed that a subsidiary of the Commonwealth Bank of Australia (CBA), the country's biggest bank, had continued charging service fees to some customers years after they had died.
Amid the ongoing revelations, the conservative government of Prime Minister Malcolm Turnbull, which had long resisted launching the Royal Commission, unveiled plans Friday to toughen criminal and financial penalties for bank misconduct and to expand ASIC's investigative powers.
Financial Services Minister Kelly O'Dwyer said these include increasing the maximum jail term for individuals convicted of serious offences from five to 10 years, and imposing fines on companies which could reach 10 percent of their annual revenue.
The country's major banks-among the developed world's wealthiest-had been under increasing scrutiny in recent years amid allegations of dodgy financial and life insurance advice and mortgage fraud.
There have also been claims of anti-money laundering laws being breached and benchmark interest rates rigged.

More News For this Category

Abdus Samad Labu, Chairman, Board of Directors of Al-Arafah Islami Bank Ltd, presiding over its 329th Board Meeting at its head office on Saturday. Vice Chairman Md. Abdus Salam, members of the Board Hafez Md. Enayetullah, Md Liakat Ali Chowdhury, Md. Amir Uddin PPM, Nazmul Ahsan Khaled, Abdul Malek Mollah, Alhajj Md. Harun-Ar-Rashid Khan, Alhajj Md. Anowar Hossain, Engr. Kh. Mesbahuddin Ahmed, Ahamedul Hoque, Niaz Ahmed, Khalid Rahim, M. Kamaluddin Chowdhury, Managing Director and CEO Farman R Chowdhury attended the meeting.

Abdus Samad Labu, Chairman, Board of Directors of Al-Arafah Islami Bank Ltd, presiding over its 329th Board Meeting at its head office on Saturday. Vice Chairman Md. Abdus Salam, members of the Board Hafez Md. Enayetullah, Md Liakat Ali Chowdhury, Md. Amir Uddin PPM, Nazmul Ahsan Khaled, Abdul Malek Mollah, Alhajj Md. Harun-Ar-Rashid Khan, Alhajj Md. Anowar Hossain, Engr. Kh. Mesbahuddin Ahmed, Ahamedul Hoque, Niaz Ahmed, Khalid Rahim, M. Kamaluddin Chowdhury, Managing Director and CEO Farman R Chowdhury attended the meeting.

.

Jordan border, Damascus seeks to revive regional trade

AFP, Beirut :By reopening a key land crossing with Jordan this month, the Syrian regime is inching towards a return to trade with the wider region as it looks

Global stocks mixed amid worries over China, Italy

AFP, New York :An early rally on Wall Street fizzled Friday as global bourses finished mixed amid a range of worries that included Italy's messy budget dispute with Brussels

Greek pensioners to be spared further cuts in 2019: PM

Greek pensioners to be spared further cuts in 2019: PM

AFP, Athens :Greece will spare its elderly further pensions cuts in its 2019 budget, Prime Minister Alexis Tsipras said Saturday, after receiving European Commission approval on the issue.  "The

Macao's communication sector revenue drops in 2017

Xinhua, Macao :Macao's communication business revenue totaled 7.16 billion patacas (about 887 million U.S. dollars) in 2017, down by 9.7 percent year-on-year, the special administrative region's statistic service said

Mamun-Ur-Rashid, Managing Director of Standard Bank Limited poses for a photo session with the participants of a seminar on Innovation for Growth and Development in the Developing Countries organized for the students of GMBA Program of Hitotsubashi University and Hosei University of Japan recently.  He presented a Key Note Paper at the seminar. Professor Dr. Yonekura of the University and other students were also participated.

Mamun-Ur-Rashid, Managing Director of Standard Bank Limited poses for a photo session with the participants of a seminar on Innovation for Growth and Development in the Developing Countries organized for the students of GMBA Program of Hitotsubashi University and Hosei University of Japan recently. He presented a Key Note Paper at the seminar. Professor Dr. Yonekura of the University and other students were also participated.

.

Ahmed Jamal, Deputy Governor, Bangladesh Bank and Project Director, Investment Promotion and Financing Facility II (IPFF II) Project, Md. Arfan Ali, Managing Director of Bank Asia Ltd, exchanging signing documents of Master Facility Agreement of IPFF II Project at a ceremony at Bangladesh Bank Head Office. Rathin Kumar Paul, Deputy General Manager, Bangladesh Bank and Deputy Project Director of IPFF II Project and Shafiuzzaman, Senior Executive Vice President and Head of Corporate and Large Loan of Bank Asia along with other senior officials of the Bank were also present in the signing ceremony.

Ahmed Jamal, Deputy Governor, Bangladesh Bank and Project Director, Investment Promotion and Financing Facility II (IPFF II) Project, Md. Arfan Ali, Managing Director of Bank Asia Ltd, exchanging signing documents of Master Facility Agreement of IPFF II Project at a ceremony at Bangladesh Bank Head Office. Rathin Kumar Paul, Deputy General Manager, Bangladesh Bank and Deputy Project Director of IPFF II Project and Shafiuzzaman, Senior Executive Vice President and Head of Corporate and Large Loan of Bank Asia along with other senior officials of the Bank were also present in the signing ceremony.

.

Saudi to host Davos summit amid outcry over Khashoggi murder

AFP, Riyadh :Saudi Arabia will host a key investment summit on Tuesday, overshadowed by the killing of critic Jamal Khashoggi that has prompted a wave of policymakers and corporate

China launches full-throated bid to boost confidence in stocks

AFP, Shanghai :China's top economic supremo on Friday led a coordinated drive by top financial officials to shore up confidence in the country's stock markets and economy, in a

Mr. Robert Douglas Simpson, FAO Representative in Bangladesh called on Acting Vice-Chancellor Professor Dr. Md. Solaiman Ali Fakir during his visit at the Bangladesh Agricultural University, Mymensingh.

Mr. Robert Douglas Simpson, FAO Representative in Bangladesh called on Acting Vice-Chancellor Professor Dr. Md. Solaiman Ali Fakir during his visit at the Bangladesh Agricultural University, Mymensingh.

.