One of the best performers on the ASX 200 on Tuesday was the AMP Limited (ASX: AMP) share price.
The financial services company's shares were up as much as 12% at one stage before ending the day 10.5% higher at $2.43.
Whilst this gain is very strong, it is worth noting that AMP's shares have still lost over half of their value since this time last year even after accounting for today's push higher.
Why did the AMP share price rocket higher today?
As with bank shares like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC), investors have been fighting to get hold of AMP's shares after the Royal Commission final report wasn't as bad as many had feared.
Industry peer IOOF Holdings Limited (ASX: IFL) was also a strong performer today, climbing as much as 14% before ending the day 8% higher.
What did AMP say about the final report?
This morning AMP responded to the final report by saying that it believed it provided greater certainty and expects it to help restore confidence and stability to Australia's financial system.
It also advised that it will "work constructively with the government, regulators, advisers, trustees and other bodies to ensure that, as the recommendations move into definitive legislative reform, the outcomes are clear, simple and meet the best interests of customers."
Before adding that it "remains committed to its purpose of helping customers manage and protect their wealth and to ensuring high quality financial advice is available and affordable for all Australians."
AMP chairman, David Murray, stated:
"The financial services sector is a key pillar of the Australian economy, and it is essential that customers have trust in the services it provides. The Royal Commission's final report will be a turning point for the industry, which has rightly been heavily criticised for its mistakes. AMP notes that the benefits of vertical integration remain available for customers while acknowledging that conflicts of interest need to be more effectively managed. The proposed regulatory changes will require serious and determined effort to implement but, with the support of industry, should deliver better outcomes for customers."
Should you invest?
While I think that AMP will become a better run company because of the Royal Commission, I am concerned that its brand has been damaged so severely that it may take some time before it returns to its former glory.
Because of this, it's not a share that I plan to buy any time soon.
