Opinion: AMP directors risk losing government posts over fees scandal
The public backlash against AMP's attempts to mislead an ASIC investigation into its controversial practice of levying fees for advice to clients without providing any services could imperil several public sector roles held by board members.Pressure is mounting on AMP chair Catherine Brenner and CEO Craig Meller to appear before the Hayne Royal Commission to address allegations that the board was involved in censoring an independent expert's report on the fee gouging practice.According to evidence given to the Royal Commission by senior AMP executive Jack Regan this week, the company's board requested the removal of references to Meller in the expert's report before a reworked version was sent to ASIC.In a statement on Wednesday the corporate regulator said it was continuing to investigate AMP for making false or misleading statements over its fees for no service practices.If it is proven that the AMP board tried to mislead ASIC by authorising changes to the expert's report prepared by Clayton Utz then directors might be exposed to criminal sanctions.While the reputational fallout of the fees scandal is already eroding public trust in the AMP brand, several directors also face losing key positions in the government sector if it is shown that the board acted improperly.Meller's position on the federal government's Financial Services Advisory Council already looks tenuous after Treasurer Scott Morrison's censure of the company's conduct on Wednesday.Morrison sent a clear signal to the Australian public that the government's trust in AMP as an organisation was waning. "What has occurred here and what has been admitted to in the Royal Commission by AMP is deeply disturbing," he said."They have said that they basically charged people for services they didn't provide and they have admitted to statements that were misleading to ASIC and to their own customers, and this is deeply distressing."This type of behaviour can attract penalties which include jail time. "That's how serious these things are."Given these comments, it is difficult to see how the government could continue to accept policy advice about financial services matters from AMP's most senior executive, even if Meller was not directly involved in what appear to be cold-blooded efforts to mislead ASIC.Two other directors - Holly Kramer and Trevor Matthews - might be forced to relinquish their respective roles in the public sector if the AMP board is found to have engaged in making false statements to the regulator.Matthews is a prominent regulator in New South Wales where he presides over the operations of the State Insurance Regulatory Authority.Under SIRA's code of conduct, directors are expected not to "engage in conduct likely to bring discredit on the Authority".Kramer is the deputy chair of Australia Post, a role that entitles her to annual pay of more than A$100,000. Section 2 of Australia Post's code of ethics requires directors not to act contrary to "any standards prescribed by any Australian law or regulation".Failure to comply with any Australian laws or regulations is described in the code as "unacceptable behaviour".Commissioner Kenneth Hayne on Tuesday issued an invitation for