Ailing fund manager AMP can learn lesson from rockers Van Halen

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Resignation of veteran banker David Murray points at deep malaise afflicting Australian financial services sector

Rockers Van Halen had an infamous way of spotting problems when they were setting up for live gigs.

Murray is a former CEO of Commonwealth Bank of Australia and author of a 2014 official report into the country’s financial system. He was brought in just more than two years ago as part of a board clean-out to address scandals arising from a government inquiry by high court judge Kenneth Hayne, including charging life insurance fees to dead people and lying to the corporate regulator.

Let’s set aside what the current case and resulting internal revolt among employees say about AMP’s “distinctive culture” and the extent to which it’s a competitive advantage. The lasting lesson should be that regulators tasked with ensuring a stable and honest corporate sector are quite right to take a holistic view of the way a company runs itself, by peeking into the metaphorical M&M’s bowl for telltale signs of bad behaviour.

 

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