Who's fit to work for AMP

Ross Illingworth

Melbourne, Vic

Australian Financial Review
OPINION
27 April 2018

After the revelations at the Hayne royal commission, AMP's board must be having a close look at AMP's compliance with Prudential Standard APS 520 that covers 'fit and proper persons'.

The standard contains management and oversight obligations such as "appropriate skills, experience and knowledge and act with honesty and integrity". Ouch! 

APS 520 goes on to say when a "…regulated institution subsequently becomes aware of information that may result in a person being assessed is not a fit and proper, the regulated institution must take all reasonable steps, including collecting sensitive information as defined in the Privacy Act if relevant, to ensure that it can prudently conclude that no material fitness or probity concern exists. Where a concern exists, a full fit and proper assessment must be conducted."

By this stage the oxygen masks must have automatically deployed from the AMP board room's ceiling! The board has no choice but to engage an independent expert to complete fit and proper assessment of the board and senior management at AMP (including the three directors standing for re-election).

APS 520 makes it very clear that the "…prime responsibility for ensuring that an institution's responsible person is a fit and proper remains with the board of directors". Shareholders look forward to a detailed explanation from AMP's chairwoman Catherine Brenner's on the corporation's compliance with APS520 at the AGM on May 10.