AMP, the biggest listed wealth manager in , announced that it has hired veteran banker, Francesco De Ferrari, as its new Chief Executive Officer today. De Ferrari will have his work cut out for him to mend the firm’s reputation, as it is currently in the midst of a regulatory crisis.
Particularly, the Banking Royal Commission has accused the firm of charging its customers fees for no service. Then, at the board level, worked to deceive a regulator about it. This has seen the company lose half its board and nearly A$5 billion ($3.7 billion).
Instead of promoting internally, the Australian financial planning firm opted to hire offshore. The move to AMP will end De Ferrari’s 17-year-long tenure at the Swiss multinational investment bank. His most recent position at the firm was CEO South East Asia and Frontier Markets and Head of Private Banking Asia Pacific.
Source: Reuters
Before returning to his position as a Non-executive Director on the AMP Board, Wilkins will work with De Ferrari to ensure a smooth transition. De Ferrari will also join the AMP Limited Board as an Executive Director at the financial planning company’s first Board meeting in January next year.
De Ferrari’s experience aligns nicely with the future of AMP
During his career at , De Ferrari dealt with the US Department of Justice and with Italian authorities for the bank. According to the statement, this was a huge asset to his candidacy, as it shows he has the ability to steer the firm through any regulatory changes or actions that result from the Royal Commission.
Source: LinkedIn
“We have designed a remuneration structure to drive the recovery of AMP and recognise the degree of challenge in the task ahead. His remuneration and incentives are directly aligned with the interests of shareholders. With his track record of commitment to clients and business performance, I have no doubt Francesco is the right person to lead the recovery of AMP and set the strategy for future growth.”
De Ferrari added: “I’m encouraged by the process of change already initiated by the Board, and I’m committed to accelerating this change, while maximising the opportunities we have both in Australia and internationally.”
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