The AMP Limited (ASX: AMP) share price is up 10% after Chairman David Murray said that AMP won’t be structurally changed by the Royal Commission.
AMP is a diversified financial services company which has its primary operations in financial advice, including financial planning and wealth management. A big part of its business is licensing other planning groups to provide advice. AMP also has capabilities in investing (AMP Capital), banking and insurance.
AMP share price rises 10%
The AMP share price is up 10.4% so far today as investors considered what Commissioner Hayne’s report meant for the diversified financial business.
AMP Chairman David Murray said to ABC News: “The fundamental business model at AMP is not structurally changed by the royal commission.
“But in the area of advice, we have to work with the industry now and advisors in the industry, [to make] some important changes so that we can continue to have affordable, reliable and ethical advice”.
AMP now has a new board and new management, and said it will work with the government, regulators, advisers, trustees and other bodies to work on the issues.
Importantly, AMP noted that the benefits of vertical integration remain available for customers while acknowledging that conflicts of interest need to be more effectively managed.
Although I don’t think this news means AMP is suddenly going to turn into a wonderful growth investment, it does seem as though AMP may comfortably survive this Royal Commission ordeal. Proven ASX growth shares could be better picks for a portfolio, such as the ones mentioned in the FREE report below.
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