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UPDATE 2-AMP Chair, Legal Adviser on Misconduct Scandal



* Chairman Burners and Legal Adviser Salter Resign Immediately

* AMP cuts board fees by 25 percent for the remainder of 2018

* Nearly $ 1.7 billion has been the market value of AMP for the last two years Weeks Wiped Off (Recasts, Adds Comments) SYDNEY, April 30 (Reuters) – AMP Ltd announced the resignation of its chairman and legal advisor and cut its directors' fees by a quarter as Australia's largest publicly traded asset manager seeks

The exits come just one week after CEO Craig Meller's departure following a revelation in a judicial investigation by the country's financial sector that AMP has misled customers and repeatedly deceived the corporate regulators.

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9659002] Chairwoman Catherine Brenner and Group General Counsel Brian Salter are immediately a outbreak, AMP said in a statement.

Mike Wilkins, who has been appointed as both provisional chairman and CEO, said the evidence given to the government-backed Royal Commission was "taken very seriously by the board."

"Appropriate steps are being taken to tackle the issues raised, and the rehabilitation of our customers is given top priority," he said Monday.

AMP wiped out around $ 2.2 billion ($ 1.7 billion) of its market capitalization during the Commission's two-week public consultation, which focused on financial advisory services. On Friday, the value was estimated at 11.6 billion US dollars.

The hearing has been heard that over the past decade, AMP's advisors have misappropriated thousands of clients' funds by charging them without advice and repeatedly lied to the Australian Securities and Investments Commission (ASIC).

The counsel supporting the investigation warned Friday that AMP violated provisions of the Corporations Act that include criminal sanctions.

The Royal Commission is only a few months into the probable yearlong investigation. The investigation will be able to make far-reaching recommendations, including legislative changes and criminal or civil prosecution.

Wilkins said the selection of a new AMP chair, along with the ongoing CEO search, is being rapidly pursued to "help ensure stability and further strengthen governance."

AMP said it would cut fees for all board directors by 25 percent for the remainder of 2018, recognizing "the collective leadership's responsibility for the issues raised in the Royal Commission and its repercussions on its reputation." AMP ". It was also said that the "employment and compensation consequences" for persons responsible for levying fraudulent charges would be fixed as soon as an external employment review was completed which they expected shortly.

The company stated that it would give a formal opinion in response to the allegations made to the Commission on 4 May.

$ 1 = 1.3201 Australian Dollars
Reporting by Aaron Saldanha in Bangalore; Editing Jane
Wardell and Himani Sarkar


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