Australian finance group AMP has shaken up its extensive but disappointing UK operations, sacking managers and scaling back on investment plans in an attempt to stimulate its flagging share price.

Andrew Mohl, who replaced Paul Batchelor as chief executive last month, said AMP was refocusing on its core wealth management operations.

Mr Mohl admitted that the shake-up would mean the end of AMP's ambition to become a top-five financial firm in the UK.

"The strategy we have been pursuing in the UK has been too aggressive... given the challenges we're facing in external markets," Mr Mohl said.

Troubles at AMP's UK businesses, which include financial advisers, banks and insurers Pearl, London Life and National Provident Life have contributed to a 40% fall in AMP's shares since March.

Mend, not close

The firm said it was too early to give full details of the shake-up, which will be explained in full in November.

But it said it was intent on mending, not closing its existing businesses.

AMP is in the final stages of raising 1.15bn Australian dollars (�403m; $630m) in order to recapitalise Pearl insurance, which has breached UK financial stability regulations.

At the same time, the firm's five main UK executives - including its managing director and head of international strategy - are to leave the firm.

One becomes two

The main thrust of the shake-up will be to split AMP's British operations into two parts.

"Mature" businesses, comprising those whose investment products are closed to new business, will form one unit, while "contemporary" open operations will form the other.

The markets have taken the news with enthusiasm, sending AMP's shares up by 2.5% on Monday.

"As shareholders and customers, I understand your confidence in AMP may have been shaken," Mr Mohn said in a statement.

"In the months ahead, one of my main priorities will be to restore that confidence."