Credit Suisse’s former top private banker in Asia is confronting tawdry personal issues as CEO of Australia’s AMP. A «devastating» scandal cost him a long-standing close ally.
Francesco De Ferrari knew turning around battered AMP would be tough, but he probably didn’t envisage the newest chapter in the Sydney-based wealth manager’s turnaround efforts. De Ferrari reportedly warned staff after Alex Wade, of one of his closest allies, left with immediate effect – that complaints are taken seriously.
Last week De Ferrari accepted Wade’s resignation, reportedly after the latter sent lewd photos as well as otherwise displayed poor conduct, according to «The Australian» (behind paywall). The two had worked closely together at Credit Suisse, and Wade was one of the first bankers De Ferrari poached after he took the top job at AMP nearly two years ago.
De Ferrari «Devastated»
The Aussie daily quoted sources close to De Ferrari saying the veteran Swiss banker is «devastated» about the events before Wade’s exit, some of which had reportedly been flagged to AMP’s board previously. Via a spokesman, Wade told «The Australian» that «my focus now is on a period of personal reflection and the relationships that are most important to me.»
Wade joined AMP last year as head of advice, but De Ferrari quickly expanded his remit to include all of its wealth management activities as well as its bank. Wade will be replaced by New Zealand boss Blair Vernon temporarily.
Distraction From Main Scandal
The affair is an unwelcome distraction from AMP’s biggest problem: recovering from a scandal over misleading customers and lying to its regulator. Bleeding assets, the wealth manager in 2018 tapped De Ferrari, a «clean-skin», or someone untainted from outside to clean up.
The circumstances of Wade's exit don't sit well with De Ferrari’s squeaky-clean image (he once volunteered with Mother Teresa). In his 17 years at Credit Suisse prior to his move to Australia, the Swiss private banker built a reputation for being a «by the book» manager.
Lack Of Diversity?
Separately, AMP's former chair, Catherine Brenner, appeared to criticize De Ferrari's management for lack of diversity, in an interview with «Australian Financial Review». Brenner, who stepped down in 2018, made the comments shortly after she was cleared of the threat of regulatory action.
«AFR» has also revealed that one of De Ferrari's other top executives was promoted last month, despite a 2018 sexual harassment sanction. De Ferrari, who lost out to Iqbal Khan for the top Credit Suisse wealth job five years ago, stands to earn as much as A$17.7 million ($12.7 million) at AMP over the next three years – though he took a pay cut last year.
