David Murray takes (yet another) tilt at ASIC
David Murray's antipathy towards ASIC goes back a long way so it was always going to be interesting to see if he would temper his comments once he took the chair at AMP.
Far from being conciliatory, this week he upped the argument considerably, whilst conveniently forgetting, or more correctly ignoring, the fact that AMP's track record with the regulator is less than exemplary.
For example, the chairman and board lying to ASIC is not something one would really like to have on one's corporate tombstone - or CV.
Neither is charging investors for services not received, nor consistently favouring in-house and underperforming products, and thereby making a mockery of the term "independent financial advice".
One presumes that David Murray's approach to ASIC follows the line that the best form of defence is "attack, attack, attack", or that other well tried defence, "deny, deny, deny".
There's no doubting that the level of compliance and regulation required by ASX listed companies (and unlisted ones if it comes to that) is significantly greater than it once was, but how each one implements ASIC's guidance can vary from company to company. What is quite obvious is that AMP's previous chair and the board took a very detailed and hands-on approach to management, and as the record shows, quite simply failed in the execution.
Going forward expect more entrenched criticism of ASIC from David Murray, but what will now be interesting will be who he appoints as CEO, and how they both manage to change the culture, practice and business model at AMP (assuming Murray intends to do so).
The market and the AMP share price will no doubt tell the story over time.
Meanwhile, next week sees a resumption of the Hayne Royal Commission, this time around focusing on the Superannuation sector. No one is likely to be surprised (although they might be shocked) at the revelations that will no doubt be exposed.
