AMP has set aside $290 million for compensation to customers affected by poor financial advice over the past decade.

The compensation program covers bank-owned advisers and aligned advisers.

Reviews of advice are expected to cost about $150 million over the next three years.

The group has also increased its compliance and risk management funding by about $35 million a year. 

Acting CEO Mike Wilkins says the group is confronting the issues that have damaged its reputation and has made a “conscious business response to increased community expectations”.

AMP expects a first-half profit of about $490 million, amid deterioration in the wealth protection business.