AMP does penance: contributes $100,000 to corporate education

The stir created when AMP disclosed in a prospectus last July that the capital levels at its Pearl operation in the UK were below regulatory requirements cost former chief executive Paul Batchelor his job.

AMP had previously denied that Pearl's capital levels were too low.

The financial services group is a repeat offender of continuous disclosure regulations. It was the subject of a separate ASIC investigation over a similar charges a year earlier, in 2001.

Settlement for the most recent breach is a $100,000 training program designed to heighten the awareness of corporate executives and company officers of market disclosure and governance rules.

It is a general course that is intended for any companies. ASIC will not require AMP executives and officers to attend the training.

Without accepting blame, AMP conceded yesterday it could have disclosed the state of Pearl's capital position more effectively.

Mr Batchelor denied to shareholders and media that any of AMP's UK operations were breaching regulatory capital requirements in Great Britain while simultaneously announcing a capital raising.

A prospectus, on the other hand, places a legal obligation on directors to disclose matters of significance to potential investors.

Any breach makes directors liable and puts them at risk of legal action.

``We acknowledge we could have done better ... and we think this is an appropriate way to bring [the investigation] to an end," the AMP's Ms Karen Munsie said yesterday.

She said new management at AMP assembled by Mr Batchelor's replacement, Andrew Mohl, had reviewed and improved their disclosure practices.

ASIC deputy executive director of enforcement Jan Redfern agreed that AMP had ``lifted its game" under the leadership of Mr Mohl.

``We saw [the specific disclosure matter at the centre of ASIC's investigation] as more of an historical issue," the deputy director of enforcement added.

In what was interpreted as a message to the Federal Government, ASIC chairman David Knott said the regulator and and the insurance company had agreed the sum of $100,000 would have been an appropriate fine.

ASIC has no power to fine and companies argue against such a move but Mr Knott is lobbying the Federal Government to be given powers to imposeand enforce a fining regime.