Relief for Catherine Brenner, but not AMP

Catherine Brenner might be breathing easier but AMP is still a mess. The sooner it is taken over or broken up the better.

Catherine Brenner has been cleared by ASIC, but that’s not an endorsement. Picture: Hollie Adams

The relief for former AMP chair Catherine Brenner misses the point because frankly the culture at AMP has been rotten for some years – including during her reign.

No-one wants the spectre of ASIC charges hanging over their heads. But in the flurry of well-grounded good wishes, memories are short.

The reason AMP had attracted the attention of ASIC, and through ASIC, the Haye royal commission, was multiple potential breaches of the rules, including fees for no service and conflicted commissions.

It was not exactly a shining example of a pristine corporate culture.

For Brenner, clearance from ASIC should not be misconstrued somehow as an endorsement of her time in the role of AMP chair.

ASIC has obviously decided it won’t be pursuing legal action against her which is great for Brenner. But spare a thought for AMP shareholders who have not exactly had an easy ride.

Brenner – like Lindsay Maxstead at Westpac, Ken Henry at NAB and David Turner at CBA – left the AMP in the wake of clear governance failures.

Given its sorry history since listing 22 years ago, the sooner the AMP is taken over and or split up the better it will be for everyone.

The most logical external candidate remains Macquarie, but it presumably is wary of the regulatory risks involved in such a move, not to mention ongoing class action settlements.

None of which would be posted on the list of achievements for most company chairs.

Cultural change at a 170 year old organisation doesn’t come quickly and to be fair to Brenner her focus was no doubt a work in progress.

She replaced former investment banker Simon McKeon, who on some counts was seen as not focusing enough attention on AMP.

He of course has since joined the boards of NAB and Rio along with being Chancellor at Monash University which supports a high view of his standing.

McKeon has made no comments on the reason for his departure.

Brenner’s successor David Murray and his Credit Suisse mates are learning first hand about the challenges of cultural change.

Right now their scorecard is zero out of 10.

Brenner has major hurdles cleared but her next steps in corporate Australia should be based more on perceptions of her past roles at AMP not on the fact ASIC said it won’t be taking any action against her.