Along with other Australian financial organisations, the firm has suffered compliance and misconduct failings. It told investors what the likely bill for putting matters right will be.

AMP, the largest Australian wealth management firm, has warned investors it expects to provide for A$290 million (after tax) in costs to remediate clients for past misconduct over advice, part of a string of scandals in the country’s financial industry. When other costs are added, the total expected costs hit is seen at A$530 million ($392.2 million).

The statement by the firm on Friday hit its shares on Friday by as much as 5 per cent, media reports noted – to the lowest point since 2003.

To “re-set” its business AMP said it will set aside A$290 million, and also cut fees on its flagship MySuper savings products in the third quarter of this year.

The firm issued a trading update a fortnight before it is due to report earnings for the first six months of this year.

The report comes as a high-profile investigation into wrongdoing in Australian financial institutions continues its work. Already, a number of organisations have seen senior executives resign and punishments handed out in a flurry of scandals.

At the core of the claims against AMP is that it charged clients for advice it never gave.

As well as the A$290 million to compensate clients for poor advice, another A150 million is being spent to probe its advisor network, A70 million to improve risk management and compliance, and A$55 million linked to Royal Commission-related costs.

AMP estimated that its first-half 2018 underlying profit will be in the range of A$490 to 500 million.

“We’re facing squarely into the issues that have impacted our reputation and the community’s confidence in AMP,” acting chief executive Mike Wilkins said in last Friday’s statement.

“Our remediation provision responds to industry-wide issues raised by ASIC in its reports 499 and 515 and reflects a conscious business response to increased community expectations,” he said, referring to reports by the Australian Securities and Investments Commission.

“This remediation programme is complex as it will address both employed and aligned advisers, and we understand it is one of the first programs to do so. We are working on the programme with our advisers, the vast majority of whom are dedicated, professional and committed to meeting the advice needs of their clients,” Wilkins added.