AMP (ASX:AMP) has advised its accelerating its advice remediation process, which will result in a $290 (after-tax) allowance (provision) in its first half 2018 result. At the same time, it advised its underlying profit for the same period will be between $490 and $500 million.
It comes as ASIC conducted a ‘industry-wide ‘look-back’’ of advice provided from 1 July 2008 and 1 January 2009 and AMP allocated that $290 million for potential advice remediation.
It also advised 700,000 customers will see fee reductions in its flagship My Super products from the third quarter of 2018.
It also increased its risk management systems and controls, which will cost the group $35 million (after-tax) every year over the next two years.
As a result, its dividend will be at the lower end of its FY18 payout ratio guidance of 70 to 90 per cent
Shares in AMP (ASX:AMP) closed 1.70 per cent lower at $3.48 yesterday.