Discussions yesterday morning with AMP Chairman Peter Willcox and CEO Andrew Mohl on AMP’s current offer to shareholders have reassured Australian Securities and Investments Commission (ASIC) Chairman David Knott about the level of financial and other information available to shareholders.

Mr Knott said he has also discussed these matters with the Australian Prudential Regulation Authority and the UK Financial Services Authority. He said although the basic elements of the demerger have been announced by AMP, some remaining issues “have a capacity to impact on the final balance sheet composition of the AMP group companies post-demerger”.

“AMP expects that its current equity raisings will be adequate to satisfy both commercial and regulatory requirements for equity capital in the demerged companies,” Mr Knott said. “However, AMP has foreshadowed the possible need and desirability for restructuring its hybrid equity and debt.”

The demerger is subject to regulatory approvals, and the information currently available – there are no actuarial assessments yet, for example – “is not sufficiently detailed for [investors] to fully assess the proposals”.

Mr Knott said he has obtained signed undertakings from Messrs Willcox and Mohl that they have provided as much relevant information as possible. Describing the situation as “not ideal”, he said ASIC regulatory intervention “might result in shareholders ultimately paying a higher price for shares under the offer”.

“The fact that potentially important details of the demerger have yet to be decided are risks that shareholders need to consider when deciding whether to accept the offer,” Mr Knott said.