AMP has warned shareholders to lower their profit expectations, while releasing its $615 million royal commission damage control plan.

The troubled wealth management firm is expecting to report an underlying first-half profit of between $489 million-$500 million in early-August.

That is a step down from its previous underlying first-half profit (2017) of $533 million.

It also flagged to investors that the dividend they receive may be lower than expected:

"We're targeting a total full-year 2018 divided payout at the lower end of our stated range, of 70 to 90 per cent of underlying profits," AMP's acting chief executive Mike Wilkins said in an investor briefing on Friday morning.

"We estimate that our interim dividend will be outside that range, providing us with capital and strategic flexibility over the coming months."

AMP shares closed 5.2 per lower at $3.30 on Friday, its lowest price in around 15 years.

Adding up the damage control

It will also take steps to "reset the business", and put aside $290 million for a "potential advice remediation" fund.

Essentially, the company will review whether the financial advice it provided — or failed to provide — in the last decade was appropriate.

AMP had, for years, charged thousands of customers fees for financial advice which was never provided.

"The company is moving to accelerate its remediation program to ensure all impacted customers are appropriately compensated," AMP said in a statement.

AMP expects its "advice remediation" program will cost $150 million (after tax) to administer across three years.

"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," Mr Wilkins said.

"This remediation program is complex as it will address both employed and aligned advisers, and we understand it is one of the first programs to do so."

ASIC report 499 related to its investigation on the "fee for no service" scandal, while report 515 was regulator's review of how large financial institutions manage their advisers.

Its other provisional costs include:

$55 million for "one-off costs" (incurred in the first-half), relating to "the royal commission, portfolio review and costs of accelerating the advice remediating program"

$55 million for "one-off costs" (incurred in the first-half), relating to "the royal commission, portfolio review and costs of accelerating the advice remediating program" $70 million over the next two years, to upgrade risk management controls and strengthen its compliance systems

$70 million over the next two years, to upgrade risk management controls and strengthen its compliance systems $50 million from cutting the fees (by 0.45 per cent) of its MySuper products, from the 2019 financial year

The cuts to the MySuper products are expected to affect 700,000 AMP superannuation customers.

Legal costs not accounted for

AMP's expenses could potentially be higher because its provisions do not factor in the cost of defending a record five shareholder class actions.

During the investor briefing, an analyst asked Mr Wilkins: "Are we right to presume that none of the provisions allow for fines or results of class actions?"

Mr Wilkins replied: "This is a provision around customer remediation. Though just on class actions, we said we would vigorously defend those."

He is also hoping to recover some of AMP's costs by suing the financial planners responsible, and claiming the money from their insurance companies.

"Obviously as a corporate, we have insurance. But we also believe that a number of planners have insurance.

"So we said that clearly we'd be looking into what recovery availability was there for us, and we will do that."

Furthermore, Mr Wilkins confirmed that AMP may be grilled again at the banking royal commission, when its hearings resume in early August.

However, he would not confirm which AMP executives would be put up as witnesses.

"We don't know whether anyone will be called.

"We have been named as one of 13 organisations that may potentially be called.

"If we are called, then obviously the identity of the individuals concerned will be revealed at that stage."