“It’s going to be a rough, rocky ride for the next six months, twelve months, probably even longer for investors in AMP,” Morningstar Analyst David Ellis told CNBC’s “Street Signs.”
Catherine Brenner resigned Monday from her post as AMP chair in the wake of revelations about misconduct at the firm, which include misleading customers and deceiving a corporate regulator.
A wide reaching Royal Commission into Australia’s banking sector heard that advisors at AMP misappropriated funds of thousands of clients over the last decade by charging them without providing advice, and that it had repeatedly lied to the Australian Securities and Investments Commission.
AMP could face criminal penalties as a result.
“Those risks are well known, but it’s hard to know if there are going to be any further damaging revelations from the Royal Commission that are going to impact AMP further. I would like to say all the bad news is priced in, but it might be a little bit early to say that,” Ellis added.
The scandal has already caused the early departure of CEO Craig Meller, and wiped more than 2.2 billion Australian dollars ($1.7 billion) from its market capitalization in the past two weeks alone.