Australia bank inquiry ousts first executive amid fee scandal - BBC News

Australia bank inquiry ousts first executive amid fee scandal
20 April 2018

AMP is a leading financial services firm in Australia
The head of Australia's largest wealth manager has resigned after the company admitted lying to regulators for more than a decade.

AMP chief executive Craig Meller quit after an inquiry heard the business had routinely charged fees to customers for services that were not delivered.

Australia is holding a royal commission - its top form of public inquiry - into misconduct in financial institutions.

Mr Meller is the first executive to be ousted amid the inquiry.

Earlier this week the hearing was told that AMP had repeatedly misled the nation's corporate watchdog, the Australian Securities and Investments Commission (Asic), over its collection of fees.

AMP has "unreservedly apologised" for the practice.

The royal commission was ordered by Prime Minister Malcolm Turnbull last year following a series of scandals involving financial misconduct.

Why is Australia investigating its banks?
In announcing his resignation, Mr Meller said he was "personally devastated" by what had been exposed.

"I do not condone [the misconduct] or the misleading statements made to Asic," he said.

"However, as they occurred during my tenure as CEO, I believe that stepping down as CEO is an appropriate measure to begin the work that needs to be done to restore public and regulatory trust in AMP."

The Commonwealth Bank of Australia has also admitted to charging fees for undelivered services. On Thursday, the bank said the misconduct had extended to clients it knew were deceased.

Evidence of misconduct presented in public hearings this week has drawn condemnation from the nation's politicians and sparked growing public outrage.

Barnaby Joyce
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@Barnaby_Joyce
 In the past I argued against a Royal Commission into banking. I was wrong. What I have heard is so far is beyond disturbing.

9:25 PM - Apr 18, 2018

Derryn Hinch
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@HumanHeadline
 Why didn’t bank execs resign when they first found out their companies were shysters  robbing dead people and had lied to ASIC? Not years later when exposed at royal commission?

9:32 AM - Apr 20, 2018

Bill Shorten
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@billshortenmp
 What we’ve learned so far from the banking royal commission has been shocking and shameful.

7:54 PM - Apr 19, 2018

The government has proposed new 10-year jail terms for bankers and other financial executives who violate misconduct laws.